Document Content

CIRCULAR

Guiding the implementation of a number of articles of the Law on tax administration and guiding the implementation of the Government's Decree no. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on tax administration

THE MINISTRY OF FINANCE

Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration;

Pursuant to the laws, ordinances and decrees on taxes, charges, fees and other revenues of the state budget;

Pursuant to the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration;

Pursuant to the Government's Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance,

The Minister of Finance guides the implementation of a number of articles of the Law on Tax Administration and the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration as follows:

Part A

GENERAL PROVISIONS

This Circular guides the implementation of tax administrative procedures specified in 2006 Law No. 78/2006/QH11 on Tax Administration and the Government's Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Law on Tax Administration.

I. Scope of regulation

This Circular applies to the administration of various taxes according to the provisions of tax law; charges and fees belonging to the state budget according to the provisions of law on charges and fees; and other revenues of the state budget, the collection of which is managed by tax agencies (below collectively referred to as taxes).

II. Subjects of application

1. Taxpayers defined in Article 2 of the Government's Decree No. 85/2007/ND-CP include:

1.1. Organizations, households and individuals that pay taxes, charges, fees or other revenues of the state budget according to law.

1.2. Organizations that are tasked to collect charges and fees belonging to the state budget.

1.3. Organizations and individuals that withhold tax, including:

1.3.1 Organizations and individuals being Vietnamese parties to contracts with foreign organizations and individuals that conduct business in Vietnam not under the investment law and do not apply the Vietnamese accounting system;

1.3.2. Organizations and individuals withholding tax when paying incomes to persons who have incomes liable to income tax on high-income earners;

1.3.3. Organizations acting as shipping agents or foreign carriers' agents and responsible for withholding enterprise income tax on the shipping of cargoes from Vietnamese seaports to overseas seaports or between Vietnamese seaports;

1.3.4. Organizations providing tax procedure services;

2. Tax agencies include the General Department of Taxation, provincial-level tax departments and district-level tax departments;

3. Tax officers;

4. Other state agencies, organizations and individuals involved in the implementation of tax law.

III. Contents of tax administration guided in this Circular include:

1. Tax declaration, tax calculation;

2. Tax assessment;

3. Tax payment;

4. Tax collection mandate;

5. Responsibility to fulfill the tax obligation;

6. Procedures for tax exemption or tax reduction; remission of tax and fine arrears;

7. Procedures for tax refund or tax clearing;

8. Tax examination and tax inspection;

9. Settlement of complaints, denunciations and legal actions related to the implementation of tax law.

IV. Scope and contents of tax administration not covered by this Circular:

1. Provisions on administration of taxes on exports and imports; administration of taxes on exploitation and export of crude oil.

2. Tax administration contents regarding tax registration and enforcement of tax-related administrative decisions and handling of tax law violations.

V. Documents for transaction with tax agencies

1. Documents for transaction with tax agencies include documents enclosed with tax dossiers; official letters, applications, requests and other documents sent by taxpayers, organizations mandated to collect taxes and other organizations and individuals to tax agencies.

2. Documents for transaction with tax agencies must be compiled, signed and issued by competent persons; the format of, signatures and seals appended on documents must comply with the provisions of law on paperwork.

3. Documents for transaction with tax agencies that are transmitted electronically must comply with the provisions of law on e-transactions.

4. When detecting that documents for transaction with tax agencies fail to satisfy aforesaid requirements, tax agencies shall request persons who make those documents to correct errors and send replacements. The time a tax agency receives a replacement is considered the time of submission of a document for transaction.

5. The language used in tax dossier documents is Vietnamese. Foreign-language documents must be translated into Vietnamese and certified by district-level People's Committees or overseas diplomatic missions or consular offices of the Socialist Republic of Vietnam according to their respective competence.

Consular legalization of papers and documents issued by competent foreign authorities is only compulsory in specific cases guided in this Circular.

VI. Receipt of tax dossiers sent to tax agencies

1. If dossiers are submitted directly at tax agencies, tax officers shall receive and append seals of dossier receipt and record the time of dossier receipt and number of documents in dossiers.

2. If dossiers are sent by post, tax officers shall append seals showing the date of dossier receipt and record them in incoming-mail books of tax agencies.

3. If tax declaration dossiers are submitted electronically, tax agencies shall receive, check and accept them through the electronic data processing system.

4. In case of necessity to supplement dossiers, tax agencies shall notify such to taxpayers on the date of receipt of dossiers which are directly submitted to them, or within three working days from the date of receipt of dossiers sent by post or electronically.

VII. Method of counting time limits for completing tax administrative procedures

1. If a time limit is counted in days, those days are counted consecutively according to the calendar year, including weekends and holidays.

2. If a time limit is counted in working days, those days are working days of state administrative agencies in the calendar year as provided by law, excluding weekends, public holidays and lunar new year holidays (collectively referred to as holidays).

3. If a time limit is counted from a given day, the starting date of the time limit is the day following the given day.

4. If the last day of the time limit for completing administrative procedures falls on a holiday provided by law, it is the day following that holiday.

5. The date on which a tax dossier is regarded as having been submitted for counting a time limit for performing tax-related administrative jobs is the date a tax agency receives a valid dossier with all required papers and documents.

Part B

TAX DECLARATION AND TAX CALCULATION

I. General provisions on tax declaration and tax calculation

1. Principles for tax calculation and tax declaration

1.1. Taxpayers shall calculate tax amounts payable into the state budget, except when tax agencies assess or calculate tax under the provisions of Articles 37 and 38 of the Law on Tax Administration.

1.2. Taxpayers shall fill in tax returns to be submitted to tax agencies according to forms set by the Ministry of Finance and in an accurate, honest and adequate manner, and submit all required documents of tax declaration dossiers.

1.3. For taxes to be declared on a monthly, quarterly or yearly basis, if no tax liability arises in a tax period or taxpayers are currently eligible for tax relief, exemption or reduction, these taxpayers shall still submit tax declaration dossiers to tax agencies within set time limit, except for cases in which activities that give rise to tax liability have been terminated.

1.4. For taxes to be declared on a monthly or quarterly basis, the first tax period is counted from the date of commencement of activities that give rise to tax liability to the last day of a month or quarter, and the last tax period is counted from the first day of a month or quarter to the date of termination of activities that give rise to tax liability. The annual tax period for business income tax or royalties tax is counted according to the fiscal year used by taxpayers. The annual taxation period for other taxes is the calendar year.

2. Tax declaration dossiers:

A tax declaration dossier consists of a tax return and relevant documents used by a taxpayer to declare and calculate tax to a tax agency.

Taxpayers shall use the set form of tax return and forms of annexes to the tax return set by the Ministry of Finance, may not change the format, add, put out or change the position of, any element in the tax return. Those kinds of paper in the tax dossier, of which forms are not set by the Ministry of Finance, must comply with relevant provisions of law.

3. Deadlines for submission of tax declaration dossiers

3.1. Deadline for submission of monthly tax declaration dossiers is the twentieth day of the month following the month in which the tax liability arises.

3.2. Deadline for submission of quarterly tax declaration dossiers is the thirtieth day of the quarter following the quarter in which the tax liability arises.

3.3. Deadline for submission of annual tax declaration dossiers is the thirtieth day of the first month of the calendar year or fiscal year.

3.4. Deadline for submission of tax declaration dossiers for each time of arising of tax liability is the tenth day from the date the tax liability arises.

3.5. Deadline for submission of annual tax finalization dossiers is the ninetieth day from the end of the calendar year or fiscal year.

3.6. Deadline for submission of tax finalization dossiers in the case of termination of operation, expiration of contracts, corporate ownership transformation or reorganization is the forty fifth day from the date of termination, expiration, transformation or reorganization.

3.7. Deadline for submission of dossiers for declaration of taxes or other levies on land use under the inter-agency one-stop shop mechanism is the deadline set in inter-branch guiding documents on the inter-agency one-stop shop mechanism.

4. Extension of time limit for submission of tax declaration dossiers:

4.1. Taxpayers who are unable to submit their tax declaration dossiers on time due to natural disasters, fires or accidents will enjoy an extension of the time limit for submission of tax declaration dossiers given by heads of tax agencies directly managing them.

4.2. An extension must not exceed thirty days for the submission of dossiers for monthly or annual tax declaration, temporarily calculated tax declaration or tax declaration for each time of arising of tax liability; or sixty days for the submission of dossiers for declaration for tax finalization, from the original deadline for submission of tax declaration dossiers.

4.3. Before the submission deadline, taxpayers shall send written requests for extension of the time limit for submission of tax declaration dossiers to tax agencies that receive tax declaration dossiers, clearly stating the extension reason certified by People's Committees or police offices of communes, wards or townships where occurred the events that necessitate the extension.

4.4. Within five working days after receiving written requests for extension of the time limit for submission of tax declaration dossiers, tax agencies shall reply in writing taxpayers whether they approve the extension. If tax agencies make no written reply, taxpayers' requests are considered approved.

5. Making additional declarations in tax declaration dossiers:

5.1. If taxpayers detect errors in their tax declaration dossiers already submitted to tax agencies which affect their payable tax amounts, they may make additional declarations in these tax declaration dossiers. Tax declaration dossiers with additional declarations may be submitted to tax agencies on any working day, not depending on the time limit for submission of subsequent tax declaration dossiers, before tax agencies announce their decisions on tax examination or inspection at taxpayers' offices.

5.2. If additional declarations in tax declaration dossiers lead to an increase in their payable tax amounts, taxpayers shall determine by themselves fine amounts for late tax payment based on the late paid tax amount, number of days of late payment and fine level specified in Article 106 of the Law on Tax Administration. If taxpayers cannot determine by themselves or incorrectly determine fine amounts for late tax payment, tax agencies shall determine and notify these fine amounts to taxpayers for information and payment.

5.3. If additional declarations in tax declaration dossiers lead to a decrease in their payable tax amounts, taxpayers may reduce tax and fine amounts (if any) on the last day of the month of submission of additionally declared dossiers, or clear decreased tax amounts against tax amounts arising in the next tax declaration.

5.4. Dossier forms for additional declaration:

- Tax return corresponding to the tax return that needs additional declaration or changes in declared information;

- Written explanation of additional declarations and changes, made according to form No. 01/KHBS enclosed with this Circular;

- Enclosed documents explaining figures in the written explanation of additional declarations and changes, corresponding to documents in a tax dossier guided in specific sections of this Circular.

II. Declaration of value-added tax

1. Responsibility to submit value-added tax declaration dossiers to tax agencies:

1.1. Taxpayers shall submit value-added tax declaration dossiers to tax agencies directly managing them.

1.2. For taxpayers that have subsidiary units conducting business in the province or city where taxpayers' head offices are located: If these subsidiary units conduct independent accounting, they shall submit value-added tax declaration dossiers to tax agencies directly managing them. If these subsidiary units conduct dependent accounting, taxpayers shall make a common value-added tax declaration for both themselves and their subsidiary units.

If subsidiary units that conduct dependent accounting but have their own seals and bank deposit account, directly sell goods or services, declare fully input and output value-added tax, wish to make separate tax declaration and payment, they shall make separate tax registration, get dependent tax identification numbers and use separate invoices.

1.3. For taxpayers that have subsidiary units conducting business outside the province or city where taxpayers' head offices are located, these subsidiary units shall submit value-added tax declaration dossiers to tax agencies directly managing them. If these subsidiary units do not directly sell goods and have no sale turnover, they shall all make tax declaration at taxpayers' head offices.

1.4. If taxpayers conduct business activities of construction, installation or goods sale without establishing subsidiary units outside the province or city where their head offices are located (below referred to as extra-provincial mobile construction, installation or goods sale business), they shall submit tax declaration dossiers to district-level tax departments of the localities where such construction, installation or goods sale activities are conducted.

1.5. For extra-provincial construction and installation work, which are carried out in many localities, such as roads, power transmission lines, water or petroleum pipelines, etc., thus making it impossible to determine the turnover of each work in each locality, taxpayers shall declare value-added tax on extra-provincial construction and installation turnover in value-added tax declaration dossiers at their head offices.

2. Value-added tax declaration is made on a monthly basis and the following cases:

- Annual finalization declaration for value-added tax calculated directly on the basis of added value;

- Declaration of temporarily calculated value-added tax for each time of arising of tax liability for extra-provincial mobile construction, installation or goods sale business activities;

- Declaration of value-added tax for each time of arising of tax liability for value-added tax calculated directly on the basis of sale turnover of persons engaged in irregular business.

3. Declaration of value-added tax calculated by the credit method:

3.1. Taxpayers that calculate value-added tax by the tax credit method include enterprises, economic organizations and their subsidiary units conducting accounting and using invoices and documents according to regulations, except those applying the method of calculating tax directly on the basis of added value defined in Clause 4 of this Section.

3.2. A dossier of monthly declaration of value-added tax calculated by the tax credit method comprises:

- A value-added tax return, made according to form No. 01/GTGT enclosed with this Circular;

- A list of invoices and vouchers of sold goods and services, made according to form No. 01-1/GTGT enclosed with this Circular;

- A list of invoices and vouchers of purchased goods and services, made according to form No. 01-2/GTGT enclosed with this Circular;

- An explanation of additional declarations and information changes, made according to form No. 01-3/GTGT enclosed with this Circular (applicable to taxpayers that make, in the tax declaration period, additional declarations or changes in the tax declaration dossier of the previous tax declaration period);

- A table of allocation of value-added tax amounts of purchased goods and services creditable in the month, made according to form No. 01-4/GTGT enclosed with this Circular (applicable to taxpayers that allocate value-added tax amounts creditable in the month according to the ratio (%) of turnover of sold value-added tax-liable goods and service to total turnover of sold goods and services in the tax month);

- A list of adjustments to allocated input value-added tax amounts creditable in the year, made according to form No. 01-4/GTGT enclosed with this Circular (applicable to taxpayers that re-allocate value-added tax amounts creditable in the year according to ratio (%) of turnover of sold value-added tax-liable goods and service to total turnover of sold goods and services in the year). Adjusted (increased or decreased) figures of creditable allocated value-added tax amounts shall be reflected in monthly value-added tax returns of three subsequent years.

- A list of paid value-added tax amounts for turnover from extra-provincial mobile construction, installation or goods sale, made according to form No. 01-5/GTGT enclosed with this Circular.

3.3. Taxpayers that have new investment projects for which only input tax arises shall make separate tax declaration dossiers for these investment projects. A dossier of monthly declaration of value-added tax for an investment project comprises:

- A value-added tax return for the investment project, made according to form No. 02/GTGT enclosed with this Circular.

- A list of invoices and vouchers of purchased goods and services, made according to form No. 01-2/GTGT enclosed with this Circular.

4. Declaration of value-added tax calculated directly on the basis of added value:

4.1. Business households and individuals and taxpayers trading in gold, silver, gems or foreign currencies and keeping adequate purchase and sale invoices for added value determination may declare value-added tax calculated directly on the basis of added value.

4.2. Dossiers of monthly declaration of value-added tax calculated directly on the basis of added value are value-added tax returns made according to form No. 03/GTGT enclosed with this Circular.

4.3. Dossiers of declaration for annual finalization of value-added tax calculated directly on the basis of added value are value-added tax finalization returns made according to form No. 04/GTGT enclosed with this Circular.

5. Declaration of value-added tax calculated directly on the basis of turnover:

5.1. Business households, individuals and organizations that keep adequate invoices and vouchers of goods sold or service provided but inadequate purchase invoices and vouchers of input goods or services and, therefore, cannot determine added value in the period may declare value-added tax calculated directly on the basis of turnover.

5.2. Dossiers of monthly declaration of value-added tax calculated directly on turnover are value-added tax returns made according to form No. 05/GTGT enclosed with this Circular.

5.3. Dossiers of value-added tax declaration for each time of arising of tax liability calculated directly on the basis of turnover are value-added tax returns made according to form No. 05/GTGT enclosed with this Circular.

6. Declaration of value-added tax for extra-provincial mobile construction, installation or goods sale business activities.

6.1. Taxpayers engaged in extra-provincial mobile construction, installation or goods sale business activities shall declare temporarily calculated value-added tax at the ratio of 2% (for goods and services subject to the value-added tax rate of 10%) or at the ratio of 1% (for goods and services subject to the value-added tax rate of 5%) of value-added tax-exclusive goods and service turnover to district-level tax departments of localities where business activities are conducted or goods are sold.

6.2. Dossiers of value-added tax declaration for extra-provincial mobile construction, installation or goods sale business activities are value-added tax returns, made according to form No. 06/GTGT enclosed with this Circular.

6.3. Dossiers of value-added tax declaration for extra-provincial mobile construction, installation or goods sale business activities shall be submitted for each time of arising of turnover. If tax declaration dossiers need to be submitted many times in a month, taxpayers may register monthly submission of value-added tax declaration dossiers with district-level tax departments where tax declaration dossiers are submitted.

6.4. When declaring tax with tax agencies directly managing them, taxpayers shall reflect all turnover amounts arising from extra-provincial mobile construction, installation or goods sale business and value-added tax amounts paid for these turnover amounts in tax declaration dossiers of their head offices. Tax amounts (according to tax receipts) paid for turnover from extra-provincial mobile construction, installation or goods sale will be subtracted from payable value-added tax amounts stated in taxpayers' value-added tax returns of their head offices.

7. Change of applied value-added tax calculation methods.

7.1. Cases of change of applied value-added tax calculation methods.

Taxpayers currently applying the method of calculating value-added tax directly on the basis of added value and satisfying all the conditions for application of the credit method specified at Point 3.1 of this Section may send written requests, made according to form No. 07/GTGT enclosed with this Circular, to tax agencies directly managing them for permission to apply the credit method.

Taxpayers currently applying the method of calculating value-added tax directly on the basis of turnover and satisfying all the conditions for application of the method of calculating value-added tax directly on the basis of added value specified at Point 4.1 of this Section may send written requests, made according to form No. 07/GTGT enclosed with this Circular, to tax agencies directly managing them for permission to apply the method of calculating value-added tax directly on the basis of added value.

7.2. Within ten working days from the date of receipt of taxpayers' written requests for change of value-added tax calculation methods, tax agencies shall check and reply in writing to taxpayers on approval or disapproval of taxpayers' requests. Taxpayers may change their tax calculation methods only after obtaining tax agencies' approval.

7.3. If taxpayers that have changed, with tax agencies' approval, from the direct tax calculation method to the credit tax calculation method or from the method of calculating tax directly on the basis of turnover to the method of calculating tax directly on the basis of added value fail to maintain the required conditions in the course of application, tax agencies directly managing them shall apply the method of tax assessment and issue notices requiring them to change to an appropriate tax calculation method.

8. Guidance on declaration of value-added tax and making of lists of sale invoices and purchase invoices in some specific cases is as follows:

8.1. Declaration of value-added tax for agency activities:

- Taxpayers that are sale agents for goods or services liable to value-added tax shall declare tax on turnover from consigned goods sale and their agent commissions.

- Taxpayers that are collection and purchase agents in various forms shall declare value-added tax on goods they have collected and purchased and their commissions.

- Taxpayers that are ticket sale agents for postal services, lotteries, airfares, car, train or ship fares or insurance agents and sell these services, fares or insurance at prices set by their principals for commissions are not required to declare value-added tax on turnover from goods or services they have sold and their agent commissions.

- Taxpayers that are sale agents for goods or services not liable to value-added tax are not required to declare value-added tax on turnover from those goods or services and their agent commissions.

8.2. Transportation business enterprises shall submit dossiers of declaration of value-added tax on transportation business activities to tax agencies directly managing them.

8.3. Taxpayers that calculate tax by the tax credit method and trade in gold, silver, gems and foreign currencies shall make value-added tax declaration as follows:

- For activities of dealing in goods or services on which tax is calculated by the credit method, taxpayers shall make tax declaration dossiers under the provisions of Clause 3 of this Section.

- For activities of trading in gold, silver, gems and foreign currencies, taxpayers shall make tax declaration dossiers under the provisions of Clause 4 or 5 of this Section.

8.4. Taxpayers that provide financial leasing services are not required to submit value-added tax returns for financial leasing services but shall submit only lists of goods and services sold and lists of invoices of goods and services purchased, made according to forms No. 01-1/GTGT and No. 01-2/GTGT enclosed with this Circular, with the item on value-added tax of purchased goods or services filled in with the value-added tax amount of leased assets allocated appropriately according to the added value invoice made for turnover of financial leasing services in the declaration period. Taxpayers shall submit tax declaration dossiers for their assets financially hired and purchased by other units.

8.5. Tax declaration by import or export business establishments undertaking entrusted import of goods liable to value-added tax:

Establishments that undertake entrusted import of goods liable to value-added tax are not required to declare value-added tax on goods they have imported under entrustment but shall separately declare invoices made for these goods which have been delivered to import-entrusting parties in the list of added value invoices for goods sold, made according to form No. 01-1/GTGT enclosed with this Circular and submit them to tax agencies directly managing them.

8.6. In some cases, lists of purchased or sold goods or services to be enclosed with monthly tax returns submitted to tax agencies are made as follows:

- For goods and services retailed directly to consumers, such as electricity, water, petrol, oil, postal services, hotel and catering services, passenger transportation services, trading of gold, silver, gems and foreign currencies and other retailed goods and services, retail sale turnover may be declared in total amounts instead of amounts stated in separate invoices.

- For goods and services purchased in small quantities, general lists of different groups of goods or services subject to the same tax rate may be made instead of detailed listing according to separate invoices.

- For banking service establishments with dependent accounting units located in the same locality, these dependent units shall make lists of purchased or sold goods and services for keeping at the head offices. When making general lists of purchased or sold goods and services, head offices shall sum up only aggregate figures on lists made by dependent units.

9. Declaration of value-added tax for determining payable value-added tax amounts by the presumption method complies with the provisions of Section XI of this Part.

III. Declaration of business income tax

1. Responsibility to submit business income tax declaration dossiers to tax agencies:

1.1. Taxpayers shall submit business income tax declaration dossiers to tax agencies directly managing them.

1.2. If taxpayers have subsidiary units that conduct independent accounting, these subsidiary units shall submit dossiers of declaration of business income tax arising at their units to tax agencies directly managing them.

1.3. If taxpayers have subsidiary units that conduct dependent accounting, these subsidiary units are not required to submit business income tax declaration dossiers. When submitting business income tax declaration dossiers, taxpayers shall make for their head offices common declarations that also include tax amounts arising at their subsidiary units.

1.4. For economic groups and corporations that have member units conducting dependent accounting, if these member units can account their turnovers, expenditures and taxable incomes, they shall declare and pay business income tax to tax agencies directly managing them.

If member units conduct business activities different from common business lines of groups or corporations and can separately account incomes from these business activities, they shall declare business income tax to tax agencies directly managing them.

In case of necessity to make tax declaration at variance with the guidance at this Point, economic conglomerates and corporations shall report it to the Ministry of Finance for separate guidance.

1.5. Taxpayers shall submit dossiers of declaration of business income tax on incomes from transfer of land use rights or land lease right to district-level tax departments of localities where exists the land in question.

If dossiers of declaration of business income tax on incomes from transfer of land use rights or land lease right are submitted under the inter-agency one-stop-shop mechanism, regulations on the inter-agency one-stop-shop mechanism must be complied with.

2. Business income tax declaration is declaration of tax temporarily calculated on a quarterly basis, declaration for annual finalization or declaration for finalization up to the time of termination of business operation or contracts, transformation of corporate ownership or corporation reorganization, and declaration in the following cases:

- Declaration of temporarily calculated business income tax for each transfer of land use rights or land lease right, applicable to business organizations not regularly transferring land use rights or land lease right.

- Declaration of business income tax calculated according to the ratio of income to monthly turnover or for each time of generation of income of persons engaged in irregular business.

- Declaration of business income tax withheld from monthly agent commissions.

3. Declaration of business income tax temporarily calculated on a quarterly basis:

Dossiers of declaration of business income tax temporarily calculated on a quarterly basis are quarterly business income tax returns, made according to form No. 01A/TNDN enclosed with this Circular.

If taxpayers cannot declare expenses actually arising in the tax period, form No. 01B/TNDN of quarterly business income tax returns enclosed with this Circular will be used. The basis for calculation of business incomes in a quarter is the previous year's ratio of taxable income to turnover. If taxpayers have been examined or inspected by tax agencies and the ratio of taxable income to turnover according to the examination or inspection results is different from that declared by taxpayers, the tax agencies' examination or inspection results must be followed.

For taxpayers declaring business income tax on transfer of land use rights or land lease right, a tax declaration dossier contains also an annex of turnover from transfer of land use rights or land lease right, made according to form No. 01-1/TNDN enclosed with this Circular.

4. Declaration of business income tax for each time of transfer of land use rights or land lease right:

4.1. Business organizations not regularly involved in transfer of land use rights or land lease right shall declare business income tax temporarily calculated for each time of transfer of land use rights or land lease right.

Business organizations regularly involved in transfer of land use rights or land lease right and wishing to pay tax for each time of transfer may declare tax like those not regularly involved in transfer of land use rights or land lease right.

4.2. Dossiers of declaration of business income tax for each time of transfer of land use rights or land lease right are returns of business income tax on transfer of land use rights or land lease right, made according to form 02/TNDN enclosed with this Circular.

4.3. Based on dossiers of declaration of business income tax on transfer of land use rights or land lease right, tax agencies shall accept payable tax amounts stated in tax declaration dossiers or adjust payable tax amounts or certify cases not liable to tax and notify them to taxpayers within three working days from the date of receipt of dossiers. Notices shall be sent directly or enclosed with dossiers of transfer of land use rights or land lease right sent through the natural resources and environment agency under the inter-agency one-stop shop mechanism to taxpayers.

5. Declaration for finalization of business income tax:

5.1. Declaration for finalization of business income tax includes declaration for annual finalization of business income tax or declaration for finalization of business income tax up to the time of termination of business operation or contracts, transformation of corporate ownership or corporate reorganization.

5.2. A dossier of declaration for finalization of business income tax comprises:

- A business income tax return for finalization, made according to form 03/TNDN enclosed with this Circular;

- An annual financial statement or a financial statement up to the time of termination of business operation or contracts, transformation of corporate ownership or corporate reorganization;

- One or several annexes to the return (depending on the taxpayer's actually arising tax liability):

+ Annex of production and business operation results, made according to forms No. 03-1A/TNDN, No. 03-1B/TNDN, No. 03-1C/TNDN enclosed with this Circular.

+ Annex of losses carried forward, made according to form No. 03-2/TNDN enclosed with this Circular.

+ Annex of business income tax on transfer of land use rights or land lease right, made according to form No. 03-3/TNDN enclosed with this Circular.

+ Annex of business income tax incentives, made according to the forms enclosed with this Circular.

+ Annex of business income tax amounts already paid abroad and creditable in the taxation period, made according to form No. 03-5/TNDN enclosed with this Circular.

6. Declaration of business income tax calculated according to the ratio of income to turnover:

6.1. Taxpayers that properly comply with regulations on goods or service sale invoices or vouchers and can determine taxable turnover but cannot determine expenses and taxable incomes; or taxpayers that generate turnover from irregular business activities and use goods sale invoices supplied on a case-by-case basis at tax agencies for these business activities shall declare business income tax calculated according to the ratio of income to taxable turnover.

6.2. Dossiers of declaration of business income tax calculated according to the ratio of income to taxable turnover are returns of business income tax calculated based on the ratio of income to turnover, made according to form No. 04/TNDN enclosed with this Circular.

7. Declaration of business income tax withheld from agent commissions:

7.1. Taxpayers that sign agency contracts with households or individuals acting as service agents to sell their goods at set prices for commissions shall withhold business income tax equal to 5% of commission amounts to be paid to agents (including also supports for agents under contracts signed with taxpayers).

7.2. Dossiers of declaration of business income tax withheld from agent commissions are returns of business income tax withheld from agent commissions, made according to form No. 05/TNDN enclosed with this Circular.

8. Declaration of business income tax for determining payable business income tax amounts by the presumption method complies with the provisions of Section XI of this Part.

IV. Declaration of special consumption tax

1. Responsibility to submit special consumption tax declaration dossiers to tax agencies:

1.1. Taxpayers that produce or process goods or provide services liable to special consumption tax; are engaged in export business and purchase goods for which special consumption tax has not been paid, and then do not export but sell goods at home shall submit special consumption tax declaration dossiers to tax agencies directly managing them.

1.2. If taxpayers producing goods liable to special consumption tax sell goods through their branches, stores, subsidiary units or sale agents that sell goods at set prices for commissions, or consign goods for sale, they shall declare special consumption tax on the whole quantity of these goods with tax agencies directly managing them. Branches, stores, subsidiary units, agents or units selling consigned goods are not required to declare special consumption tax but shall send lists of goods sold to both taxpayers and tax agencies directly managing branches, subsidiary units, agents or units selling consigned goods for monitoring.

2. Declaration of special consumption tax is made on a monthly basis. For goods purchased for export but sold at home, declaration must be made for each time of arising of tax liability.

3. A special consumption tax declaration dossier comprises:

- A special consumption tax declaration return, made according to form No. 01/TTDB enclosed with this Circular;

- A list of invoices of goods and services liable to special consumption tax, made according to form No. 01-1/TTDB enclosed with this Circular;

- A list of creditable special consumption tax amounts (if any), made according to form No. 01-2/TTDB enclosed with this Circular;

4. Declaration of special consumption tax for determining payable special consumption tax amounts by the presumption method complies with the provisions of Section XI of this Part.

V. Declaration of royalties tax

1. Responsibility to submit royalties tax declaration dossiers to tax agencies:

1.1. Taxpayers shall submit their royalties tax declaration dossiers to tax agencies directly managing them.

1.2. If units collecting and purchasing natural resources register for payment of royalties tax on behalf of units exploiting natural resources, they shall submit royalties tax declaration dossiers to district-level tax departments of localities where natural resources are exploited.

2. Declaration of royalties tax is monthly declaration and declaration for annual finalization or declaration for finalization up to the time of termination of natural resources exploitation or business activities or contracts, transformation of corporate ownership or corporate reorganization.

3. Royalties tax declaration dossiers:

3.1. A dossier of monthly royalties tax declaration comprises:

- A royalties tax return applicable to natural resources-exploiting establishments, made according to form No. 01/TAIN enclosed with this Circular; or

- A return of royalties tax paid on behalf of exploiters applicable to natural resources-collecting and -purchasing establishments, made according to form No. 02/TAIN enclosed with this Circular.

3.2. A dossier of declaration for royalties tax finalization comprises:

- A royalties tax return for finalization, made according to form No. 03/TAIN enclosed with this Circular.

- Enclosed documents related to royalties tax exemption or reduction.

4. Declaration of royalties tax for determining payable royalties tax amounts by the presumption method complies with the provisions of Section XI of this Part.

VI. Declaration of income tax on high-income earners (below referred to as personal income tax)

1. Declaration of personal income tax on regular incomes:

1.1. Responsibility to submit dossiers of declaration of personal income tax on regular incomes:

- Organizations and individuals that pay regular incomes liable to personal income tax shall withhold tax at source, and declare and pay tax on behalf of taxable income earners.

- Organizations and individuals shall withhold personal income tax temporarily calculated at the rate of 10% of income amounts of VND 500,000 or more each which are paid to individuals having no labor contracts, including agency or brokerage commissions (including bonuses), copyright royalties, lecturing remunerations; patent, mark or copyrighted work licensing fees; remunerations for participation in projects, business associations, boards of directors or members' councils; scientific, technical, informatics, consultancy, designing, architectural or training services, performing activities, sports and physical training activities, and other payments liable to personal income tax.

- Individuals who have regular incomes at a level liable to personal income tax shall register for tax payment directly with tax agencies.

1.2. Places of submission of dossiers of declaration of personal income tax on regular incomes:

- Taxpayers engaged in production or business activities shall submit their tax declaration dossiers to tax agencies directly managing them.

- Taxpayers not engaged in production or business activities shall submit their tax declaration dossiers to tax departments of provinces or centrally run cities where they are located, for organizations, or where they permanently reside, regularly work or earn incomes, for individuals.

1.3. Declaration of personal income tax on regular incomes is declaration of tax temporarily calculated on a monthly basis and declaration for annual finalization.

A taxpayer who has a total monthly tax amount of less than five million dong may declare tax for temporary tax payment on a quarterly basis. Whether tax payment declaration can be made on a quarterly basis must be determined annually and based on the total tax amount arising in the first month of the year.

If individuals who register for tax payment directly with tax agencies can determine stable monthly incomes in a year, they shall submit their dossiers of declaration of temporarily calculated tax for only the first month and pay personal income tax amounts for subsequent months according to the tax amount declared for the first month, except when there is a change in their incomes.

1.4. Personal income tax declaration dossiers for tax withheld at source:

1.4.1. Personal income tax declaration dossiers for tax withheld according to the partially progressive tariff are personal income tax returns for tax withheld according to the partially progressive tariff, made according to form No. 01/TNCN enclosed with this Circular.

1.4.2. Personal income tax declaration dossiers for tax withheld at the rate of 10% of paid income amounts are personal income tax returns for tax withheld at the rate of 10%, made according to form No. 02/TNCN enclosed with this Circular.

1.4.3. Personal income tax declaration dossiers for withheld tax of foreign individuals not residing in Vietnam are personal income tax returns for withheld tax of foreign individuals not residing in Vietnam, made according to form No. 03/TNCN enclosed with this Circular.

1.4.4. A dossier of declaration of withheld personal income tax for finalization comprises:

- A return of withheld personal income tax for finalization, made according to form No. 04/TNCN enclosed with this Circular.

- A table of detailed finalization of personal income tax, made according to form No. 04-1/TNCN enclosed with this Circular.

Individuals who earn incomes liable to personal income tax and authorize withholding parties to conduct annual finalization of personal income tax shall send to withholding parties written mandates for tax finalization, made according to form No. 04-2/TNCN enclosed with this Circular, and written declarations of number of days of residence in Vietnam (if any). Withholding parties that conduct finalization on income earners' behalf shall keep those documents at their offices and are not required to submit them together with dossiers of tax declaration for finalization.

1.5. Personal income tax declaration dossiers for individuals declaring tax directly to tax agencies:

1.5.1. Monthly or quarterly personal income tax declaration dossiers are personal income tax returns, made according to form No. 05/TNCN enclosed with this Circular.

1.5.2. A dossier of declaration of personal income tax for finalization comprises:

- A personal income tax finalization return, made according to form No. 06A/TNCN or No. 06B/TNCN enclosed with this Circular.

- A written declaration of number of days of residence in Vietnam for foreign individuals, made according to form No. 06-1/TNCN enclosed with this Circular.

- A list of tax receipts or tax withholding documents and documents showing subtracted, exempted or reduced tax amounts.

1.6. If foreign individuals who earn taxable incomes are eligible for tax exemption or reduction under double taxation avoidance agreements between Vietnam and foreign countries/territories, the following procedures shall be additionally carried out:

1.6.1. For individuals being residents of foreign countries:

Fifteen days before performing contracts with Vietnamese organizations or individuals, foreign individuals shall send dossiers of notification of eligibility for tax exemption or reduction under agreements to Vietnamese contracting or income-paying parties. A dossier comprises:

- A notice on eligibility for tax exemption or reduction under an agreement, made according to form No. 01-1A/TNCN enclosed with this Circular;

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A copy of the labor contract with the foreign employer (if any);

- A copy of the labor contract with the employer in Vietnam;

- A copy of the passport used for entry into or exit from Vietnam.

If the tax exemption or reduction under an agreement has been notified, only copies of new labor contracts signed with foreign and Vietnamese organizations or individuals (if any) are required for subsequent years.

Fifteen days before the expiration of the contract for working in Vietnam or the end of the tax year, whichever is earlier, an individual shall send a certificate of residence of that year of taxation and a copy of his/her passport to the Vietnamese contracting or income-paying party.

If by that time a foreign individual cannot obtain a certificate of residence, he/she is obliged to commit to sending this certificate in the first quarter of the following year.

1.6.2. For foreign individuals being residents of Vietnam:

For foreign individuals being residents of Vietnam entitled to tax exemption or reduction for incomes provided in regulations on incomes from governmental services, incomes of students, job trainees, teachers, professors and researchers, they shall carry out the following procedures:

Fifteen days before performing contracts with Vietnamese organizations or individuals, foreign individuals shall send dossiers of notification of eligibility for tax exemption or reduction to Vietnamese contracting or income-paying parties. A dossier comprises:

- A notice on eligibility for tax exemption or reduction under an agreement, made according to form No. 01-1B/TNCN enclosed with this Circular.

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A certificate granted by the agency representing the Vietnamese State of income-generating activities stated in the notice on tax exemption under the agreement.

1.6.3. For athletes and artists being residents of foreign countries and having incomes from cultural performance, sports or physical training activities in Vietnam:

Fifteen days before performing contracts (or cultural or sport or physical training exchange programs) with Vietnamese organizations or individuals, foreign individuals shall send to Vietnamese contracting or income-paying parties dossiers of notification of eligibility for tax exemption or reduction under agreements. A dossier comprises:

- A notice on eligibility for tax exemption or reduction under an agreement, made according to form No. 01-1C/TNCN enclosed with this Circular.

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A certificate granted by the agency representing the Vietnamese State in the cultural or sport or physical training exchange program of activities and incomes stated in the notice on tax exemption under the agreement.

Fifteen days before the expiration of the contract for working in Vietnam (or the cultural or sport or physical training exchange program) or the end of the tax year, whichever is earlier, a foreign individual shall send a certificate of residence of that tax year to the Vietnamese contracting or income-paying party.

If by that time a foreign individual cannot obtain a certificate of residence, he/she is obliged to commit to sending this certificate in the first quarter of the following year.

2. Declaration of personal income tax on irregular incomes:

2.1. Organizations and individuals that pay irregular incomes liable to personal income tax shall withhold tax at source, and declare and pay tax on behalf of taxable income earners.

2.2. Places of submission of dossiers of declaration of personal income tax on irregular incomes:

- Taxpayers engaged in production or business activities shall submit their tax declaration dossiers to tax agencies directly managing them.

- Taxpayers not engaged in production or business activities shall submit their tax declaration dossiers to tax departments of provinces or centrally run cities where their offices are located.

2.3. Declaration of personal income tax on irregular incomes is made for each time of income payment. Organizations that pay incomes being lottery prizes or sales promotion prizes many times in a month may register with tax agencies for submission of monthly tax declaration dossiers.

2.4. Dossiers of declaration of personal income tax on irregular incomes are returns of personal income tax on irregular incomes, made according to form No. 07/TNCN enclosed with this Circular.

VII. Declaration of excise tax

1. Excise taxpayers shall submit excise tax returns to tax agencies directly managing them.

Taxpayers that have their subsidiary units (branches, shops, etc.) conducting business in the same province or city shall submit excise tax returns of these subsidiary units to tax agencies directly managing taxpayers.

If taxpayers have subsidiary units located outside the province or city where taxpayers' head offices are located, these subsidiary units shall submit their excise tax returns to tax agencies directly managing them.

Taxpayers that conduct business activities without fixed places of business, such as shipment goods trading or mobile business, or are households engaged in construction, transportation or other self-employed activities, shall submit their excise declaration dossiers to district-level tax departments of localities where their business activities are conducted or they reside.

2. Declaration of excise tax is made on an annual basis.

For taxpayers currently conducting business, the deadline for submission of excise tax returns for a year is January 30 of the year.

For taxpayers or their subsidiary units that have newly commenced business operation, the deadline for submission of excise tax returns is the last day of the month of business operation commencement.

3. Excise tax declaration dossiers are excise tax returns made according to form No. 01/MBAI enclosed with this Circular.

VIII. Declaration of taxes and state budget revenues related to land use

1. Declaration of housing and land tax and determination of payable tax amounts:

1.1. Taxpayers shall submit housing and land tax declaration dossiers to district-level tax departments of localities where exists land liable to housing and land tax.

1.2. Deadlines for submission of housing and land tax declaration dossiers:

- For organizations, the deadline for submission of housing and land tax declaration dossiers is January 30 every year.

- Households and individuals that use land liable to tax and recorded in tax registers of tax agencies in a year are not required to submit housing and land tax declaration dossiers for the following year.

- If in a year there is an increase or decrease in the land area liable to housing and land tax, taxpayers shall submit tax declaration dossiers within ten days after the land area increases or decreases.

- Taxpayers entitled to housing and land tax exemption or reduction shall still submit housing and land tax declaration dossiers together with documents related to determination of the tax exemption or reduction of the first year and the year following the year of expiration of the tax exemption or reduction duration.

1.3. Housing and land tax declaration dossiers are:

- Housing and land tax returns made according to form No. 01/NDAT enclosed with this Circular, applicable to organizations; or

- Housing and land tax returns made according to form No. 02/NDAT enclosed with this Circular, applicable to households and individuals.

1.4. Determination of payable housing and land tax amounts:

- Organizations shall determine by themselves their payable tax amounts in their housing and land tax returns.

- For housing and land tax of households and individuals: district-level tax departments shall, based on tax amounts of the previous year or housing and land tax returns of the year, calculate tax amounts and issue notices on housing and land tax payment according to form No. 03/NDAT enclosed with this Circular to taxpayers.

1.5. Deadlines for tax agencies to issue notices on housing and land tax payment to households and individuals:

- April 15 for notices on housing and land tax payment of the first payment period in the year; the deadline for tax payment is May 1.

- September 15 for notices on housing and land tax payment of the second payment period in the year; the deadline for tax payment is October 1.

- If they receive supplemented tax declaration dossiers after the date of issuance of tax notices, tax agencies shall issue tax payment notices based on these supplemented declaration dossiers within ten days from the date of receipt of these tax declaration dossiers.

If taxpayers wish to pay the housing and land tax amount once for the whole year, they shall pay it according to the deadline for the first tax payment of the year.

2. Declaration of agricultural land use tax

2.1. Agricultural land use taxpayers shall submit agricultural land use tax declaration dossiers to district-level tax departments of localities where exists land liable to agricultural land use tax.

2.2. Deadlines for submission of agricultural land use tax declaration dossiers:

- For organizations, the deadline for submission of agricultural land use tax declaration dossiers is January 30 every year.

- Households and individuals that use land liable to tax and recorded in tax registers of tax agencies in a year are not required to submit agricultural land use tax declaration dossiers for the following year.

- If agricultural land use tax is paid for land areas under perennial crops to be harvested only once, the time limit for submission of tax declaration dossiers is ten days from the date of harvest.

- If in a year there is an increase or decrease in the land area liable to agricultural land use tax, taxpayers shall submit tax declaration dossiers within ten days after that land area increases or decreases.

- Taxpayers entitled to agricultural land use tax exemption or reduction shall still submit housing and land tax declaration dossiers together with documents related to determination of the tax exemption or reduction of the first year and the year following the year of expiration of the tax exemption or reduction duration.

2.3. Agricultural land use tax declaration dossiers are:

- Agricultural land use tax returns made according to form No. 01/SDNN enclosed with this Circular, applicable to organizations;

- Agricultural land use tax returns made according to form No. 02/SDNN enclosed with this Circular, applicable to households and individuals; or

- Agricultural land use tax returns made according to form No. 03/SDNN enclosed with this Circular, applicable to tax declaration for land areas under perennial crops to be harvested only once.

2.4. Determination of payable agricultural land use tax amounts:

- Organizations shall determine by themselves their payable agricultural land use tax amounts in their agricultural land use tax returns.

- For agricultural land use tax of households and individuals: district-level tax departments shall, based on tax amounts of the previous year or agricultural land use tax returns of the year, calculate tax amounts and issue notices on agricultural land use tax payment made according to form No. 04/SDNN enclosed with this Circular to taxpayers.

- For agricultural land use tax on land areas under perennial crops to be harvested only once, taxpayers shall determine their payable agricultural land use tax amounts. If taxpayers cannot determine their payable tax amounts, tax agencies shall assess payable tax amounts and notify them to taxpayers.

2.5. Deadlines for tax agencies to issue notices on agricultural land use tax payment to households and individuals:

- April 15 for notices on agricultural land use tax payment for the first payment period of the year; the deadline for tax payment is May 1.

- September 15 for notices on agricultural land use tax payment for the second payment period of the year; the deadline for tax payment is October 1.

- If receiving supplemented tax declaration dossiers after the date of issuance of tax notices, tax agencies shall issue tax payment notices based on these supplemented declaration dossiers within ten days from the date of receipt of these tax declaration dossiers.

For localities where the agricultural product harvest time does not coincide with the tax payment deadlines specified at this Point, district-level tax departments may set other deadlines for tax payment notification and tax payment not more than 30 days later than the deadlines specified at this Point. If taxpayers wish to pay the agricultural land use tax amount once for the whole year, they shall pay it according to the deadline for the first tax payment of the year.

3. Declaration of land and water surface rents and notices on land and water surface rent payment:

3.1. Land and water surface lessees shall make land and water surface rent declarations according to form No. 01/TMDN enclosed with this Circular together with land and water surface rent dossiers to land use rights registry offices or natural resources and environment agencies.

3.2. Land use rights registry offices or natural resources and environment agencies shall transfer land and water surface rent declaration dossiers to district-level tax departments of localities where exist the rented land and water surface.

Those who have leased land and water surface areas since the previous year(s), submitted land and water surface rent declaration dossiers to tax agencies are not required to submit land and water surface rent declaration dossiers.

In case of a change in areas stated in land and water surface lease contracts, land and water surface lessees shall make and submit new land rent payment dossiers according to the provisions of Point 3.1 of this Section.

3.3. For new land and water surface lessees, tax agencies shall, within five working days from the date of receipt of valid land rent declaration dossiers, determine payable land and water surface rents and send notices on land rent payment, made according to form No. 02/TMDN enclosed with this Circular, through land use rights registry offices or natural resources and environment agencies to land and water surface lessees for information and payment of land and water surface rents into the state budget.

3.4. For persons who have leased land and water surface areas since the previous year(s), tax agencies shall send notices on land rent payment to them by the following deadlines:

- April 15 for notices on land and water surface rent payment for the first payment period of the year; the payment deadline is May 1.

- September 15 for notices on land and water surface rent payment for the second payment period of the year; the payment deadline is October 1.

If a competent agency adjusts land and water surface rent rates, tax agencies shall re-determine payable land and water surface rents and notify them to concerned rent payers.

If land and water surface lessees wish to pay land and water surface rents once for the whole year, they shall pay these rents by the deadline for the first payment of the year.

4. Declaration of land use levy:

4.1. Land users shall make land use levy declarations according to form No. 01/TSDD enclosed with this Circular together with documents related to the determination of financial obligations according to the provisions of law to land use rights registry offices or natural resources and environment agencies.

4.2. Land use rights registry offices or natural resources and environment agencies shall transfer land use levy declaration dossiers of land users to district-level tax departments of localities where exist land areas with land use rights certificates.

4.3. Within three working days from the date of receipt of complete land use levy declaration dossiers, tax agencies shall determine payable land use levy amounts and send notices on land use levy payment, made according to form No. 02/TSDD enclosed with this Circular, to land use rights registry offices or natural resources and environment agencies for delivery to land users.

4.4. The time limit for payment of land use levy is 30 days from the date taxpayers receive payment notices.

5. Declaration of land use right transfer tax:

5.1. Taxpayers shall make land use right transfer tax declarations according to form No. 01/CQSD enclosed with this Circular together with land use right transfer dossiers (as specified by law) to land use rights registry offices or natural resources and environment agencies.

5.2. Land use rights registry offices or natural resources and environment agencies shall transfer land use right transfer tax declaration dossiers to district-level tax departments of localities where exist land areas subject to land use right transfer.

5.3. Within three working days from the date of receipt of complete land use right transfer tax declaration dossiers, tax agencies shall determine payable land use right transfer tax amounts and send notices on land use right transfer tax payment, made according to form No. 02/CQSD enclosed with this Circular, to land use rights registry offices or natural resources and environment agencies for delivery to taxpayers.

5.4. The time limit for payment of land use right transfer tax is 30 days from the date taxpayers receive tax payment notices.

IX. Declaration of charges and fees

1. Declaration of registration fee:

1.1. Responsibility to submit registration fee declaration dossiers and places where registration fee declaration dossiers are submitted:

Organizations and individuals that have assets liable to registration fee shall declare registration fees and submit registration fee declaration dossiers to tax agencies.

- Dossiers of declaration of registration fee for houses and land shall be submitted to district-level tax departments of localities where exist those houses and land. If house and land registration fee declaration dossiers are submitted under the inter-agency one-stop shop mechanism, regulations on the one-stop shop mechanism must be complied with.

- Dossiers of declaration of registration fee for other assets, such as means of transport, guns, etc., shall be submitted to district-level tax departments where the ownership or use right of these assets is registered.

1.2. A house and land registration fee declaration dossier comprises:

- A registration fee return, made according to form No. 01/LPTB enclosed with this Circular;

- Papers evidencing the lawful origin of the house and land, such as invoices accompanied with a copy of the house and land transfer contract or paper; or a competent state agency's decision on land assignment or construction permit, etc.;

- Papers proving that the property (or property owner) is not subject to or is exempt from registration fee (if any).

1.3. A dossier of declaration of registration fee for ships, boats, cars, motorcycles, hunting rifles, sports guns (except for fishing or inland waterway ships and boats of a tonnage of under 50 tons or of less than 20 passenger seats, for which original dossiers are unavailable, as defined at Point 1.4 of this Section) comprises:

- A registration fee return, made according to form No. 02/LPTB enclosed with this Circular;

- Papers evidencing the lawful origin of the asset, such as imports customs declaration certified by a border-gate customs office (for directly imported assets); asset registration certificate handed by the asset assignor to the asset assignee (for assets for which ownership right has been registered);

- Lawful asset purchase invoice (in case of purchase and sale, transfer or exchange of assets in which the asset deliverer is a production or business organization or individual); or sale invoice of confiscated goods (in case of purchase of confiscated goods); or decision on assignment, transfer or liquidation of assets (in case a state administrative and non-business agency, state judicial agency, administrative and non-business agency of a political organization, socio-political organization, social organization or socio-professional organization not engaged in production or business activities assigns assets to another organization or individual); or paper on asset assignment signed between the asset assignor and the asset assignee certified by a state notary public or a competent state agency (in case of asset assignment between individuals not engaged in production or business activities).

- Papers proving that the asset or the asset owner is not liable to or is exempt from registration fee (if any).

1.4. A dossier of declaration of registration fee for fishing ships and boats or inland waterway ships and boats of a tonnage of under 50 tons or of less than 20 passenger seats, for which original dossiers are unavailable, comprises:

- A registration fee return, made according to form No. 02/LPTB enclosed with this Circular;

- A competent agency's notice or certification of the ship or boat's eligibility for ownership registration (for securing the interests of those that have paid registration fees but are not granted an ownership or use right registration certificate by a competent state agency).

1.5. District-level tax departments shall issue notices on registration fee payment within three working days (for houses and land) or one working day (for ships, boats, cars, motorcycles, hunting rifles and sports guns) from the date of receipt of valid dossiers. They shall return invalid dossiers to land use rights registry offices or natural resources and environment agencies (for house and land registration fee dossiers), or to asset owners (for dossiers of registration fee for other assets) within the time limit specified at this Point.

Notices on payment of registration fee for houses and land shall be made according to form No. 01-1/LPTB enclosed with this Circular. Notices on payment of registration fee for other assets shall be written on registration fee returns for those assets.

1.6. The time limit for registration fee payment is 30 days from the date taxpayers receive payment notices.

2. Declaration of petrol and oil charge:

2.1. Petrol and oil charge payers shall submit petrol and oil charge declaration dossiers to tax agencies directly managing them.

2.2. Petrol and oil charge declaration is made on a monthly basis.

2.3. Petrol and oil charge declaration dossiers are petrol and oil charge returns made according to form No. 01/PHXD enclosed with this Circular.

3. Declaration of environmental protection charge for mineral exploitation:

3.1. Organizations and individuals engaged in mineral exploitation shall submit environmental protection charge declaration dossiers to tax agencies directly managing them. If organizations collecting and purchasing minerals have registered for payment of environmental protection charge on behalf of exploiters, they shall submit environmental protection charge declaration dossiers to district-level tax departments of localities where minerals are exploited.

3.2. Environmental protection charge declaration is made on a monthly basis.

3.3. An environmental protection charge declaration dossier comprises:

- An environmental protection charge return, made according to form No. 01/BVMT enclosed with this Circular, applicable to mineral exploiting establishments;

- An environmental protection charge return, made according to form No. 02/BVMT enclosed with this Circular, applicable to mineral collecting and purchasing establishments that pay the charge on exploiters' behalf.

4. Declaration of other charges and fees belonging to the state budget:

4.1. Agencies and organizations tasked to collect charges and fees belonging to the state budget shall submit charge and fee declaration dossiers to tax agencies directly managing them.

4.2. Declaration of charges and fees belonging to the state budget is made on a monthly basis and finalized on an annual basis.

4.3. Dossiers of monthly declaration of charges and fees belonging to the state budget are charge and fee returns made according to form No. 01/PHLP enclosed with this Circular.

4.4. Dossiers of declaration for annual finalization of charges and fees belonging to the state budget are charge and fee returns made according to form No. 02/PHLP enclosed with this Circular.

X. Declaration of value-added tax and business income tax of foreign organizations without the Vietnamese legal entity status and foreign independent practitioners conducting business or earning incomes in Vietnam (below referred to as foreign contractors); declaration of taxes withheld and paid for foreign carriers

1. For foreign contractors applying the Vietnamese accounting system:

1.1. Foreign contractors shall make value-added tax declaration according to the provisions of Section II of this Part.

1.2. Foreign contractors shall make business income tax declaration according to the provisions of Section III of this Part. For foreign contractors eligible for tax exemption or reduction under double taxation avoidance agreements between Vietnam and other countries/territories, the following procedures are additionally carried out:

1.2.1. For incomes from production or business activities:

When temporarily calculating business income tax, taxpayers shall send dossiers notifying their eligibility for tax exemption or reduction under agreements to tax agencies together with quarterly business income tax returns made according to form No. 01A/TNDN or No. 01B/TNDN enclosed with this Circular. A dossier comprises:

- A notice of eligibility for tax exemption or reduction under an agreement, made according to form No. 03-6A/TNDN enclosed with this Circular;

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- Copy(ies) of the business registration certificate and/or the tax registration certificate granted by the country of residence, for business organizations and individuals.

- Copies of the contracts signed with organizations and individuals in Vietnam and abroad.

If in the previous year taxpayers already notified their eligibility for tax exemption or reduction under agreements, they should send only copies of contracts signed with new organizations and individuals in Vietnam and abroad (if any) for subsequent years.

When making business income tax declaration for finalization, taxpayers shall send their certificates of residence for the year of taxation and certifications of performance of contracts by contracting parties together with business income tax returns for finalization, made according to form No. 03/TNDN enclosed with this Circular.

1.2.2. For incomes from independent professional practice:

- When temporarily calculating business income tax, taxpayers shall send dossiers notifying their eligibility for tax exemption or reduction under agreements to tax agencies together with quarterly business income tax returns, made according to form No. 01/TNDN enclosed with this Circular. A dossier comprises:

- A notice of eligibility for tax exemption or reduction under an agreement, made according to form No. 03-6B/TNDN enclosed with this Circular;

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A copy(ies) of the business registration certificate and/or the practice license or the tax registration certificate granted by the country of residence;

- A copy(ies) of the business registration certificate and/or the practice license granted by Vietnam, for business lines or occupations subject to business registration or practice license under Vietnamese law;

- A copy of the passport used for entry into or exit from Vietnam;

- A copy of the contract on provision of independent professional services in Vietnam (if any).

If in the previous year taxpayers already notified their eligibility for tax exemption or reduction under agreements, they should only send copies of contracts signed with new organizations and individuals in Vietnam and abroad (if any) for subsequent years.

2. For foreign contractors that do not practice the Vietnamese accounting system:

2.1. Vietnamese parties entering into contracts with foreign contractors that do not practice the Vietnamese accounting system shall withhold and pay taxes for foreign contractors and submit tax declaration dossiers to tax agencies directly managing them.

For construction and installation contracts, tax declaration dossiers shall be submitted to provincial-lever tax departments of localities where construction and installation activities are conducted.

2.2. Declaration of withheld tax amounts of foreign contractors is made for each time of payment to foreign contractors and finalized upon expiration of contracts.

If Vietnamese parties make many payments to foreign contractors in a month, they may register for monthly tax declaration instead of declaration for each time of payment to foreign contractors.

2.3. A dossier of declaration of withheld tax of a foreign contractor for each time of payment to that foreign contractor or on a monthly basis comprises:

- A tax return, made according to form No. 01/NTNN enclosed with this Circular;

- Copies of the contract, sub-contract(s) and their Vietnamese brief contents related to the declared tax amount (for the first-time tax declaration of the contract);

- A copy of the business license or the practice license.

For foreign contractors eligible for tax exemption or reduction under double taxation avoidance agreements between Vietnam and other countries/territories, the following additional procedures shall be carried out:

2.3.1. For incomes from independent professional practice:

Fifteen days before the performance of contracts on provision of independent professional services in Vietnam (if any) with Vietnamese organizations and individuals, foreign contractors shall send to Vietnamese contracting or income-paying parties their dossiers notifying their eligibility for tax exemption or reduction under agreements. A dossier comprises:

- A notice of eligibility for tax exemption or reduction under an agreement, made according to form No. 01-1A/NTNN enclosed with this Circular;

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A copy(ies) of the business registration certificate and/or the practice license or the tax registration certificate granted by the country of residence;

- A copy of the passport used for entry into or exit from Vietnam;

If in the previous year foreign contractors already notified their eligibility for tax exemption or reduction under agreements, they are only required to send copies of contracts newly signed with organizations and individuals in Vietnam and abroad (if any) for subsequent years.

Fifteen days before the expiration of their contracts for working in Vietnam or the end of the year of taxation, whichever is earlier, foreign contractors shall send residence certificates of the year of taxation and copies of their passports to Vietnamese contracting or income-paying parties.

If no certificates of residence are available at that time, taxpayers are obliged to commit to sending these certificates within the first quarter of the following year.

2.3.2. For incomes from air transportation:

Fifteen days before being licensed to exploit the Vietnamese market or the beginning of the year of taxation, whichever is earlier, Vietnam-based offices of foreign airlines shall send to tax agencies their dossiers notifying their eligibility for tax exemption or reduction under agreements. A dossier comprises:

- A notice of eligibility for tax exemption or reduction under an agreement, made according to form No. 01-1B/NTNN enclosed with this Circular;

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A copy of the license for exploitation of the Vietnamese market (flight license) granted by the Civil Aviation Administration of Vietnam under the Law on Civil Aviation.

If in the previous year taxpayers already notified their eligibility for tax exemption or reduction under agreements, they are only required to send copies of new licenses for exploitation of the Vietnamese market (flight licenses) (if any) granted by the Civil Aviation Administration of Vietnam.

Fifteen days before the expiration of their contracts for working in Vietnam or the end of the tax year, whichever is earlier, Vietnam-based offices of foreign airlines shall send certificates of residence of the year of taxation to Vietnamese contracting or income-paying parties and the relevant year of taxation's lists of turnovers from air ticket sale in the Vietnamese market as a basis for effecting business income tax exemption or reduction for foreign airlines' incomes from international transportation.

2.3.3. For incomes of other kinds:

Fifteen days before the performance of their contracts with Vietnamese organizations and individuals, foreign contractors shall send to Vietnamese contracting or income-paying parties their dossiers notifying their eligibility for tax exemption or reduction under agreements. A dossier comprises:

- A notice of eligibility for tax exemption or reduction under an agreement, made according to form No. 01-1C/NTNN enclosed with this Circular;

- The original certificate of residence granted by a tax agency of the country of residence in the year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A copy(ies) of the business registration certificate and/or the tax registration certificate granted by the country of residence, for taxpayers being business organizations;

- Copies of contracts signed with Vietnamese organizations and individuals. If in the previous year foreign contractors already notified their eligibility for tax exemption or reduction under agreements, they should only send copies of contracts newly signed with Vietnamese organizations and individuals (if any) for subsequent years.

Fifteen days before the expiration of their contracts for working in Vietnam or the end of the tax year, whichever is earlier, foreign contractors shall send certificates of residence of the tax year to Vietnamese contracting or income-paying parties.

If no certificates of residence are available at that time, foreign contractors are obliged to commit to sending these certificates within the first quarter of the following year.

2.4. A dossier of declaration for finalization of withheld tax of a foreign contractor comprises:

- A contractor tax return for finalization, made according to form No. 02/NTNN enclosed with this Circular;

- A list of foreign contractors and sub-contractors involved in the performance of the contract, made according to form No. 02-1/NTNN enclosed with this Circular;

- A list of tax receipts for different times of payment;

- A written record of liquidation of the contract.

3. Foreign contractors and sub-contractors that have permanent establishments in Vietnam, and can fully reflect on accounting books invoices and vouchers of all turnovers from goods and services sold, values of goods and services purchased, output value-added tax, creditable input value-added tax and payable value-added tax amounts may pay value-added tax by the credit method under the provisions of Clause 1 of this Section, and pay business income tax under the provisions of Clause 2 of this Section.

4. Declaration of taxes withheld and paid for foreign carriers (below referred to as freight tax):

4.1. Organizations acting as shipping or forwarding agents for foreign carriers shall withhold and pay freight tax for foreign carriers.

4.2. Dossiers of declaration of freight tax shall be submitted to tax agencies directly managing shipping or forwarding agents.

4.3. Declaration of freight tax is made on a monthly basis.

4.4. A dossier of declaration of freight tax comprises:

- A freight tax return, made according to form No. 01/CUOC enclosed with this Circular;

- A list of international transportation incomes, made according to form No. 01-1A/CUOC applicable to enterprises that directly operate means of transport, or form No. 01-1B/CUOC, applicable to the case of booking swap or division, or a list of turnovers from container keeping, made according to form No.01-1C/CUOC.

In freight tax returns for the first period of taxation of the year, foreign carriers or their agents shall send to tax agencies dossiers notifying their eligibility for tax exemption or reduction under agreements. A dossier comprises:

- A notice of eligibility for tax exemption or reduction under an agreement, made according to form No. 01-2/CUOC enclosed with this Circular ;

- The original certificate of residence granted by a tax agency of the country where the foreign carrier resides for the tax year preceding the year of notification of eligibility for tax exemption or reduction under the agreement;

- A copy(ies) of the business registration certificate and/or the tax registration certificate granted by the country of residence;

- A document evidencing the carrier's direct operation of ships, which is one of the following documents:

+ A copy of the ship ownership registration;

+ A copy of the ship charter contract (if the carrier charters or is given the right to use the ship);

+ The original license for ship operation along a fixed route, or its copy certified by the port authority;

+ The original port entry permit, or its copy certified by the port authority;

+ The port authority's original certificate of the carrier's ships entering a Vietnamese port;

+ Other documents.

If foreign carriers are involved in partnership, space swap or lease or bareboat charter, etc., they shall additionally supply relevant documents (such as partnership contract for joint operation of means of transport, contracts on space swap or contracts on bareboat charter, etc.).

At the end of a year, foreign carriers or their agents shall send to tax agencies their certificates of residence for the year.

If in the previous year foreign carriers or their agents notified their eligibility for tax exemption or reduction under agreements, they are only required to notify any change in the business situation, such as change in business registration or change in ownership or operation of means of transport (if any), and supply documents evidencing such change.

Foreign carriers that have main agents/head offices of agents and subsidiary agents/branches in different localities of Vietnam, agents/foreign carriers shall submit their original certificates of residence and tax registration certificates/business registration certificates which have been consularly legalized to provincial-level tax departments of localities where main agents/head offices of agents are located and their copies (with true-copy seals of main agents or certified by notary public) to provincial-level tax departments of localities where foreign carriers' subsidiary agents/branches are located, and clearly state the places where they have submitted the originals in their notices of eligibility for tax exemption or reduction under an agreement.

XI. Tax declaration and determination of payable tax amounts by the presumption method

1. Households and individuals engaged in business activities or exploitation of natural resources and paying tax by the presumption method (below collectively referred to as households paying presumptive tax) include:

1.1. Business households and individuals without business registration or not required to make business registration that do not make tax registration or still fail, though having been urged by tax agencies, to make tax registration within the time limit stated in the notices of tax agencies.

1.2. Business households and individuals that do not practice the invoice- and voucher-based accounting.

1.3. Business households and individuals that do not submit tax returns according to regulations.

1.4. Business households and individuals that keep accounting books but are detected through inspection by tax agencies to have improperly observed the accounting regulations or improperly and inadequately kept invoices and vouchers of purchased goods and services, or made inaccurate and untruthful tax declaration; and therefore, tax agencies cannot base on those accounting books, invoices and vouchers to determine payable tax amounts suitable to their actual business situation.

1.5. Households and individuals engaged in manual, scattered, mobile or irregular exploitation of natural resources.

1.6. Taxes and charge which can be collected by the presumption method include:

2.1. Special consumption tax;

2.2. Royalties tax;

2.3. Value-added tax;

2.4. Business income tax;

2.5. Environmental protection charge for natural resource exploitation.

3. Presumptive tax declaration dossiers shall be submitted to district-level tax departments of localities where natural resource-trading or

-exploiting activities are conducted.

3.1. Business households and individuals paying presumptive tax shall make tax declaration according to form No. 01/THKH enclosed with this Circular.

3.2. Households and individuals exploiting natural resources and minerals and paying presumptive tax shall make tax declaration according to form No. 02/THKH enclosed with this Circular.

4. Deadline and time limit for submission of presumptive tax declaration dossiers:

4.1. Households paying presumptive tax shall make tax declaration on an annual basis (making tax declaration once a year). The deadline for submission of a tax declaration dossier for a year is December 30 of the preceding year.

4.2. For those newly engaged in business activities or natural resource and mineral exploitation, the time limit for submission of presumptive tax declaration dossiers is ten days from the date of commencement of business or natural resource and mineral exploitation activities.

5. Determination of payable presumptive tax amounts for business households:

Based on taxpayers' documents declaring turnovers, incomes, outputs and sale prices of exploited natural resources and tax agencies' database, district-level tax departments shall coordinate with commune/ward tax consultancy councils in checking and verifying the accuracy and truthfulness of tax declaration dossiers, investigating and re-calculating turnovers and incomes in cases they doubt that declarations are incorrect in order to re-determine business turnovers, outputs and sale prices of exploited natural resources. In order to assure fair tax determination, district-level tax departments shall publicly announce projected turnovers and payable tax amounts of households and individuals engaged in business or natural resource exploitation and paying tax by the presumption method for their comments, then consult commune/ward tax consultancy councils before determining and notifying payable tax amounts to tax-paying households and individuals for information and implementation.

Presumptive tax amounts are monthly tax amounts kept unchanged throughout a year, unless when households paying presumptive tax change their business lines or scale or natural resource and mineral exploitation scale.

If business households and individuals suspend their business activities for a whole month, they are exempt from paying tax amounts of that month. If they suspend their business activities for more than fifteen days in a month, they will be considered for 50% reduction of payable tax amounts of that month.

6. Deadline and time limit for tax notification and tax payment:

The deadline for tax agencies to send presumptive tax payment notices, made according to form No. 03/THKH enclosed with this Circular, to households paying presumptive tax is January 20. One-time notices are applicable to monthly tax amounts throughout a year.

Based on presumptive tax payment notices, tax-paying households shall pay the tax amount of a month no later than the last day of the month. If they choose to pay tax on a quarterly basis, the deadline for tax payment for a quarter is the last day of the first month of the quarter.

For royalties tax, tax agencies may issue tax payment notices on a seasonal basis. Tax agencies shall state the tax payment deadline in tax notices and send those notices to households paying presumptive tax at least ten days before the tax payment deadline.

7. If households paying presumptive tax change their business lines or scale or natural resource and mineral exploitation scale or outputs, they shall make additional declaration with tax agencies in the month the scale is changed so that tax agencies can determine presumptive tax amounts suitable to taxpayers' actually arising tax liability.

Dossiers of re-declaration are returns made according to form No. 01/THKH or No. 02/THKH enclosed with this Circular.

Tax agencies shall re-determine payable presumptive tax amounts for months in which the business line or scale or natural resource and mineral exploitation scale or output is changed and notify them to taxpayers.

If business households fail to declare the change of business lines or scale with tax agencies or make untruthful declaration or tax agencies have documents evidencing the business households' scale change which leads to an increase in their turnover, tax agencies may assess payable tax amounts suitable to these households' business situation.

XII. Tax assessment for taxpayers that pay tax by the declaration method and commit tax-law violations

1. Assessment of payable tax amounts:

Taxpayers that pay tax by the declaration method are subject to tax assessment in the following cases:

1.1. They fail to make tax registration according to the provisions of Article 22 of the Law on Tax Administration.

1.2. They are ineligible for extension of the time limit for submission of tax declaration dossiers according to the provisions of Clause 1, Article 33 of the Law on Tax Administration and fail to submit their tax declaration dossiers within the set time limit.

1.3. They have submitted tax declaration dossiers which are considered incomplete and inaccurate through examination by tax agencies, and they are requested by tax agencies to make additional declarations or submit additional dossier documents but still fail to do so, and therefore, tax agencies cannot base themselves on specific elements in tax declaration dossiers to conclude that payable tax amounts stated in those dossiers are correct.

1.4. Upon expiration of the time limit for examination or inspection, they still fail to produce accounting documents, invoices, vouchers and documents related to the identification of elements used as a basis for calculation of payable tax amounts.

1.5. They refuse to comply with or delay the compliance with tax examination or tax inspection decisions.

1.6. They are proved, through tax examination or inspection, as having not conducted accounting or having accounted and recorded inadequate, inaccurate and untruthful figures in accounting books, thus leading to incorrect identification of elements used as a basis for calculation of payable tax amounts.

1.7. They show signs of fleeing away or dispersing their assets to shirk their tax liability.

2. Assessment of each element related to determination of payable tax amounts:

Taxpayers that pay tax by the declaration method are subject to assessment of each element related to determination of payable tax amounts in the following cases:

2.1. Tax agencies obtain, through tax examination or tax inspection, grounds to prove that taxpayers have conducted accounting at variance with regulations, or have inadequately, inaccurately and untruthfully recorded figures in accounting books, thus leading to incorrect identification of elements used as a basis for calculation of payable tax amounts, except for the case of tax assessment.

2.2. Tax agencies detect, through inspection of goods purchased or sold, that taxpayers have accounted the values of these goods not at ordinary transaction prices on the market.

Ordinary transaction prices on the market are transaction prices under objective agreements between parties that have no association relations.

Tax agencies may refer to goods and service prices announced by state management agencies at the time of inspection, or purchase or sale prices of enterprises engaged in the same business line, dealing in the same goods items, or sale prices of enterprises dealing in the same goods items on a large scale and with large numbers of customers in localities in order to identify ordinary transaction prices used as a basis for determining purchase or sale prices and assessing payable tax amounts.

3. Bases for tax assessment:

Tax agencies shall assess tax amounts for taxpayers that pay tax by the declaration method and commit tax law violations on one or all of the following bases:

3.1. Databases of tax agencies collected from:

- Taxpayers' declarations with tax agencies on turnovers, expenses, incomes and payable tax amounts for previous tax declaration periods.

- Organizations and individuals related to taxpayers.

- Other state management agencies.

3.2. Payable tax amounts of establishments engaged in the same business line or dealing in the same goods or doing business on the same scale in localities. If there exists no establishment engaged in the same business line or dealing in the same goods or doing business on the same scale, reference may be made to average payable tax amount of some establishments engaged in the same business line or dealing in the same goods in localities.

4. When making tax assessment, tax agencies shall send tax assessment decisions, made according to form No. 01/ADTH enclosed with this Circular, to taxpayers. A tax assessment decision has the following principal contents:

- Reason for assessment (stating the act of violation);

- Tax assessment bases;

- Tax amount assessed by the tax agency;

- Tax amount which must be additionally paid by the taxpayer (equal to the assessed tax amount less the tax amount declared by the taxpayer);

- Time limit for the taxpayer to lodge a complaint from the date the tax agency issues the tax assessment decision;

- Tax payment time limit.

The tax payment time limit is ten days from the date a tax agency issues a tax assessment decision. If the tax amount assessed by the tax agency is VND five hundred million or more, the tax payment time limit is thirty days from the tax agency issues the tax assessment decision.

After the tax agency issues a tax assessment decision, if a taxpayer submits the tax declaration dossier of the tax declaration period or the tax declaration time for which tax assessment has been made, that taxpayer shall still pay tax under the tax agency's tax assessment decision.

The tax agency shall record the tax amount stated in the late submitted tax declaration dossier as the tax amount due in that tax declaration period or time for verification of the performance of the tax obligation by the taxpayer, except when the tax agency does not accept the declared amount and notify such in writing to the taxpayer.

Part C

TAX PAYMENT

I. Tax payment deadlines and time limits

1. Taxpayers are obliged to pay taxes fully and on time into the state budget.

2. If taxpayers conduct tax calculation, the tax payment deadline is the last day of the time limit for submission of tax declaration dossiers.

3. If tax agencies conduct tax calculation or tax assessment, the tax payment time limit is stated in notices of tax agencies.

II. Currency for tax payment

1. Currency for tax payment is Vietnam dong.

2. In case of tax payment in foreign currencies:

2.1. Taxpayers may pay taxes only in freely convertible foreign currencies according to the State Bank's regulations.

2.2. Paid tax amounts in a foreign currency must be converted into Vietnam dong at the foreign exchange rate announced by the State Bank and effective at the time those tax amounts are remitted into the State Treasury.

2.3. The management of foreign currencies used for tax payment complies with the Ministry of Finance's regulations.

III. Tax payment places and procedures

1. Taxpayers shall pay taxes into the state budget:

1.1. At the State Treasury;

1.2. At tax agencies that receive tax declaration dossiers;

1.3. Through organizations authorized by tax administration agencies to collect taxes;

1.4. Through commercial banks, other credit institutions and service organizations defined by law;

The State Treasury, tax agencies and organizations mandated to collect taxes shall arrange places, facilities and personnel to facilitate the convenient and timely tax payment by taxpayers into the state budget.

2. Tax payment procedures:

2.1. Taxpayers may pay taxes in cash or by account transfer.

Tax agencies shall issue tax receipts to taxpayers and guide them in making tax receipts when paying taxes into the state budget in cash or by account transfer. Taxpayers shall fully and specifically fill in tax receipts according to the Ministry of Finance's regulations.

2.2. For taxpayers paying taxes in cash:

- If taxpayers directly come to the State Treasury to pay taxes in cash, the State Treasury shall give certification of collected tax amounts in tax receipts.

- If taxpayers pay taxes in cash at tax agencies, banks, credit institutions or to organizations or individuals mandated by tax agencies to collect taxes: Upon receiving tax amounts, organizations or individuals shall issue to taxpayers tax receipts according to the Ministry of Finance's regulations.

2.3. For taxpayers paying taxes by account transfer: Banks or credit institutions that deduct and transfer money from taxpayers' accounts into the State Treasury's account shall give certification in taxpayers' tax receipts. Banks or credit institutions shall reflect all contents of tax receipts on recourse receipts to be sent to the State Treasury that collects state budget revenues.

3. For application of coercive tax payment measures:

3.1. Application of account deduction and transfer: Based on decisions on enforcement of tax administrative decisions, the State Treasury, banks or credit institutions where organizations or individuals open their accounts shall deduct and transfer money from accounts of taxpayers subject to enforcement into the state budget.

3.2. Application of distraint and sale of assets of taxpayers to fully collect tax and fine amounts: Agencies applying this coercive tax payment measure shall carry out procedures for asset distraint and sale according to regulations in order to fully collect and remit tax and fine amounts into the state budget.

4. Within eight working hours after receiving tax amounts from taxpayers, tax-receiving agencies or organizations shall remit those tax amounts into the state budget.

If tax amounts are collected in cash in mountainous, deep-lying or remote areas, islands or areas difficult to access, the time limit for remittance of collected tax amounts into the state budget is five working days from the date of tax collection.

5. For tax payment by account transfer, when banks or credit institutions transfer money from taxpayers' accounts into the state budget by sending recourse receipts to the State Treasury, these recourse receipts must fully reflect the contents of remittance papers.

6. The Ministry of Finance shall provide specific guidance on the mode of tax payment through other service organizations defined by law.

IV. Order of paying taxes and fines

1. If taxpayers concurrently have tax arrears, tax amounts to be retrospectively collected, amounts of tax due and fine amounts, they shall clearly state these amounts in tax and fine payment receipts in the following order: tax arrears, tax amount to be retrospectively collected, amount of tax due and fine amount.

For each kind of tax or fine, the applicable payment order follows the order of arising time of tax or fine amounts, e.g., amounts arising earlier will be paid earlier.

Tax agencies shall guide and request taxpayers to pay tax and fine amounts in the above order. Upon tax payment, the State Treasury shall base itself on tax receipts to account state budget revenues and notify them to tax agencies. If taxpayers pay tax and fine amounts not in the above order, tax agencies shall make and send orders of adjustment of collected tax and fine amounts to the State Treasury for adjustment, and concurrently notify taxpayers of adjusted tax and fine amounts.

If taxpayers do not specify on payment receipts which sum of money paid for which tax or fine, tax agencies shall account collected tax amounts in the above payment order and concurrently notify such to the State Treasury for accounting of state budget revenues and issuance of notices thereon, made according to form No. 01/NOPT enclosed with this Circular, to taxpayers.

2. All tax amounts must be remitted into the state budget. The State Treasury shall record them as state budget revenues and supply receipts and detailed information on remitted amounts to tax agencies for monitoring and management.

Retrospectively collected tax amounts and fine amounts for late tax payment, tax evasion or fraud and violations of tax administrative procedures shall be remitted into tax agencies' custody accounts opened at the State Treasury. At the end of the time limit for lodging complaints about sanctioning decisions, tax agencies shall transfer money from their custody accounts into the state budget.

V. Determination of tax payment date

Tax payment date is determined to be the date on which:

1. The State Treasury, banks or credit institutions give certification on papers of remittance into the state budget by account transfer in case of tax payment by account transfer.

2. The State Treasury, tax agencies or organizations and individuals mandated to collect taxes give certification of money collection on receipts of tax amounts paid in cash.

VI. Extension of tax payment time limit

1. Cases eligible for extension:

Taxpayers are entitled to an extension of the time limit for payment of tax or fine arrears if they are unable to pay taxes within that time limit in the following cases:

1.1. They suffer from material loss caused by natural disasters, fires or unexpected accidents that render them unable to pay taxes within the set time limit;

1.2. They relocate their places of business at the request of competent state agencies, thus leading to the cessation or downscaling of their production or business activities or increased investment expenses at new places of production or business;

1.3. There is a state policy change that directly affects their production or business results;

1.4. They encounter other exceptional difficulties. In this case, extension of the payment time limit shall be decided by the Prime Minister at the proposal of the Minister of Finance.

2. Tax and fine amounts eligible for payment time limit extension:

2.1. Taxpayers that encounter difficulties caused by events specified at Point 1.1 of this Section are entitled to payment time limit extension for part or the whole of tax and fine amounts owed by the date of occurrence of a natural disaster, fire or unexpected accident.

2.2. Taxpayers that encounter difficulties caused by events specified at Points 1.2, 1.3 and 1.4 of this Section are entitled to payment time limit extension for part or the whole of tax and fine amounts arising due to these events.

3. Tax payment time limit extension:

3.1. A tax payment time limit extension must not exceed two years from the date of expiration of the tax payment time limit, for the case specified at Point 1.1 of this Section.

- If up to 50% of taxpayers' assets are damaged, the payment time limit extension for tax and fine amounts in proportion to the damage ratio is one year.

- If between 50% and 70% of taxpayers' assets are damaged, the payment time limit extension for all tax and fine amounts is one year.

- If over 70% of taxpayers' assets are damaged, the payment time limit extension for all tax and fine amounts is two years.

3.2. A tax payment time limit extension must not exceed one year from the date of expiration of the tax payment time limit, for the cases specified at Points 1.2, 1.3 and 1.4 of this Section.

4. Procedures for tax payment time limit extension:

4.1. To be entitled to tax payment time limit extension under this Section, taxpayers shall send their dossiers of application for tax and fine payment time limit extension to tax agencies directly managing them. A dossier comprises:

- An application for a tax and fine payment time limit extension, made according to form No. 02/NOPT enclosed with this Circular, clearly stating the reason for tax payment time limit extension, tax and fine amounts for which a payment time limit extension is sought, proposed extension duration, plan and commitment on payment of tax and fine amounts;

- Documents evidencing the reason for tax payment time limit extension:

+ In case of damage caused by a natural disaster, fire or unexpected accident, there must be a written record of the degree and value of asset damage made by a competent agency, such as a valuation council set up by the provincial/municipal Finance Service or a professional valuation company providing contractual valuation services or a valuation center of the provincial/municipal Finance Service; and a written certification by the commune-level administration of the locality where the natural disaster, fire or unexpected accident occurs.

+ In case of relocation of place of business at the request of a competent state agency, there must be that competent state agency's decision on relocation of the enterprise's place of business.

4.2. Within ten working days from the date of receipt of taxpayers' complete dossiers of application for tax payment time limit extension, tax agencies directly managing these taxpayers shall examine the dossiers and verify taxpayers' actual difficulties before deciding to approve or disapprove of tax payment time limit extension.

Written approval and written disapproval of tax payment time limit extension are made according to forms No. 03/NOPT and No. 04/NOPT enclosed with this Circular, respectively.

If dossiers of application for tax payment time limit extension are incomplete, tax administration agencies shall, within three working days from the date of dossier receipt, notify such in writing to taxpayers for completion of their dossiers. Taxpayers shall complete their dossiers within five working days from the date of receipt of tax administration agencies' notices on dossier supplementation. Taxpayers that fail to complete their dossiers at the request of tax administration agencies are not entitled to tax payment time limit extension.

4.3. For the case of application for tax and fine payment time limit extension specified at Point 1.4 of this Section, tax agencies directly managing taxpayers shall receive taxpayers' dossiers of extension application, then forward them to their superiors for subsequent submission to the Ministry of Finance and the Prime Minister.

5. Within the extended tax payment time limit, taxpayers are not administratively sanctioned for acts of delaying tax payment for tax amounts for which the payment time limit is extended. Upon the expiration of the extended tax payment time limit, taxpayers shall pay taxes into the state budget according to regulations. Failing to do so, taxpayers will be administratively sanctioned for acts of tax law violation or examined for penal liability according to law.

VII. Handling of overpaid tax amounts

1. Tax amounts are considered overpaid when:

1.1. Taxpayers have paid tax amounts larger than payable tax amounts.

1.2. Taxpayers have refundable tax amounts under the provisions of law on value-added tax, special consumption tax, income tax on high-income earners and petrol and oil charge.

2. Taxpayers may handle overpaid tax amounts by:

2.1. Clearing overpaid tax amounts against tax or fine arrears, or clearing overpaid amounts of a tax against payable amounts of another tax.

2.2. Clearing overpaid tax amounts against payable tax amounts of the subsequent payment time.

2.3. Getting overpaid tax amounts refunded if they have no tax or fine arrears.

If overpaid tax amounts are retained to be cleared against payable tax amounts of the subsequent tax payment time for the same kind of tax, the clearing will be automatically made within tax agencies' management systems and taxpayers are not required to carry out clearing procedures.

For clearing amounts of different kinds of tax and fine or tax refund, taxpayers shall carry out tax refund or tax clearing procedures under the provisions of Part G of this Circular. When making tax clearing, tax agencies shall issue tax refund decisions and tax collection orders for tax and fine amounts in the order specified in Clause 1, Section IV of this Part.

Part D

MANDATE OF TAX COLLECTION

I. Competence for and scope of mandate of tax collection

1. Tax agencies may mandate organizations and individuals to collect the following taxes which fall under their management:

- Agricultural land use tax;

- Housing and land tax;

- Tax on business households paying tax by the presumption method;

- Income tax on high-income earners.

For other taxes, tax agencies may mandate other organizations and individuals to collect them only after obtaining the Minister of Finance's approval.

2. Tax collection mandate must be made under contracts between heads of tax administration agencies and lawful representatives of agencies or organizations, or directly with individuals.

3. A contract on tax collection mandate must be made according to form No. 01/UNTH enclosed with this Circular and have the following contents:

- Tax of which collection is mandated;

- Geographical area where the tax collection is mandated;

- Scope of mandated activities, covering: guiding taxpayers to make tax declaration; urging taxpayers to submit tax returns and pay taxes; collecting tax returns and taxes from taxpayers and submitting tax returns to tax agencies; paying tax amounts into the state budget; reviewing and reporting on cases subject to tax declaration and payment where taxpayers fail to make tax declaration and payment; supplying information on new taxpayers or change in information on taxpayers in the geographical are where the tax collection is mandated; collecting tax amounts from taxpayers and remitting them into the state budget.

- Powers and responsibilities of the mandating party and the mandated party;

- Regime of reporting on the contract performance; regime of payment with tax receipts and prints, and collection mandate fund;

- Collection mandate duration. Upon the expiration of the collection mandate duration, the two parties shall liquidate the collection mandate contract and make a written record of liquidation according to form No. 02/UNTH enclosed with this Circular.

II. Responsibilities of the party mandated to collect taxes

The party mandated to collect taxes shall perform the collection mandate contract signed with tax agencies and may not sub-mandate any third party to perform this contract. For some specific contents of the collection mandate contract, the following guidance must be complied with:

1. In case of necessary to collect tax returns from taxpayers:

The collection-mandating party shall explain and guide taxpayers on the tax law, responsibility to make tax registration, declaration and payment; supply tax return forms and guide the tax declaration method; urge taxpayers to make tax declaration and collect tax returns from taxpayers for submission to tax agencies within a set time limit.

2. To send tax payment notices to taxpayers and urge them to pay taxes:

When receiving tax payment notices, the mandated party shall compare them with tax registers. If tax payment notices are incorrect and contain insufficient amounts as compared with tax registers, the mandated party shall promptly report to tax agencies for issuance of new tax payment notices of tax amounts consistent with those stated in tax registers.

The mandated party shall send tax payment notices to taxpayers at least five days before the tax payment deadline stated in those notices. When sending tax payment notices to taxpayers, the mandated party shall request notice recipients to sign for certification and urge taxpayers to pay taxes within the set time limit.

In case of mandate of collection of income tax on high-income earners, tax payment notices are not required to be sent but the mandated party shall urge taxpayers to pay taxes according to their tax returns.

3. To organize tax collection and remittance and issue receipts to taxpayers:

Upon tax collection, the collection-mandating party shall clearly write on tax receipts, once for all three originals of each receipt, tax amounts, kind of tax, tax period and other contents. Tax receipts must be numbered consecutively, contain sufficient and clear compulsory contents, and bear the signature and full name of the collector. After checking and receiving full tax amounts, collectors shall hand tax receipts to taxpayers.

4. To remit collected tax amounts into the state budget:

The party mandated to collect taxes shall fully and promptly remit collected tax and other revenue amounts into the state budget at the State Treasury. Tax amounts remittable into the state budget are total amounts recorded as collected amounts in tax receipts.

When remitting tax amounts into the State Treasury, the mandated party shall make a list of receipts and a paper of tax remittance in cash into the state budget. The State Treasury shall transfer to the tax agency documents of tax amounts collected under mandate and remitted for monitoring and management.

The tax agency that signs the collection mandate contract shall set a time limit and level of collected tax amounts which must be remitted by the mandated party into the State Treasury and consistent with tax amounts to be collected and geographical area of tax collection guided by the General Department of Taxation. The time limit for the party mandated to collect taxes to remit collected tax amounts into the State Treasury is five days from the date of collection for tax collection in deep-lying and remote communes difficult to access, or three days for tax collection in other geographical areas. Any collected tax amount exceeding ten million dong must be promptly remitted into the state budget.

5. To finalize colleted tax amounts and tax receipts with tax agencies:

5.1. Finalization of collected tax amounts:

By the 5th day of a month at the latest, the party mandated to collect taxes shall make a report on tax amounts collected and remitted in the last month according to form No. 03/UNTH enclosed with this Circular and send it to the tax agency. The report on collected and remitted amounts must reflect amounts to be collected, collected amounts, uncollected amounts, the reason for failure to collect them and solutions to full collection. The district-level tax department that receives this report shall check receipts of collected tax amounts and tax amounts remitted into the state budget, and compare them with actually remitted tax amounts certified by the State Treasury. In case of any difference, it shall make a written record thereof, and identify the reason and responsibility for the difference.

5.2. Finalization of tax receipts:

Once a month (by the 5th day of a month at the latest), the party mandated to collect taxes shall make a table for finalization of used tax, charge and fee receipts and unused receipts of each kind for the last month with the tax agency according to regulations.

Within ten days from the last day of a calendar year, the party mandated to collect taxes shall make a report for finalization of use of tax receipts with the tax agency, made according to form No. 04/UNTH enclosed with this Circular, on used tax, charge and fee receipts and carry forward various unused receipts to the next year.

All acts of delaying the payment of receipts or the remittance of collected tax amounts into the state budget are considered acts of misappropriating tax amounts, collecting taxes without issuing receipts or issuing improper receipts, for which the party mandated to collect taxes shall be handled according to current provisions of law.

6. To monitor and report to the tax agency on new taxpayers or changes in business scale and lines of taxpayers in the geographical area of tax collection under mandate.

III. Responsibilities of the collection-mandating tax agency

The tax agency is responsible for the implementation of the tax policy and management of taxes in its geographical area.

1. To publicly notify cases of tax collection under mandate to taxpayers for information and implementation.

2. To issue and hand tax payment notices to the party mandated to collect taxes together with approved tax registers. The time limit for handing tax payment notices to the party mandated to collect taxes before the expiration of the time limit for sending of tax payment notices specified in Part C of this Circular is ten days.

3. To supply sufficiently and promptly tax receipts to the party mandated to collect taxes and guide the latter in properly managing and using these receipts. To be supplied with tax receipts, the party mandated to collect taxes shall make a written request and issue a paper of introduction to the person authorized to get tax receipts.

4. To pay collection mandate expenses under the signed collection mandate contract.

5. To inspect the collection and remittance of tax amounts by the party mandated to collect taxes:

Based on tax receipts used for collected tax amounts and paid by the mandated party with the tax agency and issued papers of remittance into the state budget with the State Treasury's certification, the tax agency shall conduct tax accounting and determine tax arrears in order to take appropriate management measures.

For cases of late tax payment, the tax agency shall issue decisions to impose fines for late tax payment and send them to the party mandated to collect taxes for delivery to taxpayers. The party mandated to collect taxes shall urge taxpayers to pay fully unpaid tax and fine amounts into the state budget.

IV. Collection mandate fund

The party mandated to collect taxes enjoys the collection mandate fund deducted from the tax agency's operation fund.

Based on the practical conditions of each locality, the head of the tax agency shall decide on an appropriate collection mandate fund which must not exceed 8% of the total tax amount collected by the mandated party, for agricultural land use tax, housing and land tax and tax paid by the presumption method; or 1% of the collected personal income tax amount.

Part E

RESPONSIBILITY TO FULFILL THE TAX OBLIGATION

I. Fulfillment of the tax obligation by persons on exit

1. Before their exit from Vietnam, Vietnamese who leave the country to reside permanently abroad, overseas Vietnamese and foreigners shall fulfill the tax obligation.

2. Tax agencies shall notify and request in writing the immigration office to stop the exit of taxpayers who have not yet fulfilled the tax obligation in the following cases:

2.1. They are Vietnamese who leave the country to reside permanently abroad;

2.2. They are overseas Vietnamese;

2.3. They are foreigners who leave the country upon the expiration of their working duration in Vietnam or the termination of activities of providing services or working as independent practitioners in Vietnam;

2.4. They are individuals who show signs of fleeing away from Vietnam to shirk the tax obligation.

3. Upon receipt of notices of tax agencies, the immigration office shall stop the exit of individuals who have not yet fulfilled the tax obligation until those individuals completely fulfill the tax obligation and obtain certification of fulfillment of their tax obligation in Vietnam by tax agencies directly managing them, or until they get property guarantee or take other measures to secure the tax obligation fulfillment under Vietnamese law.

II. Fulfillment of the tax obligation in case of dissolution, bankruptcy or termination of operation

1. The fulfillment of the tax obligation in case of dissolution or bankruptcy complies with Article 54 of the Law on Tax Administration, and the laws on enterprises, cooperatives and bankruptcy.

Owners of private enterprises, members' councils or owners of limited liability companies, boards of directors of joint-stock companies or enterprise liquidation organizations are responsible for fulfillment of the tax obligation by dissolved enterprises.

Cooperative dissolution councils are responsible for fulfillment of the tax obligation by dissolved cooperatives.

Asset management and liquidation teams are responsible for fulfillment of the tax obligation by bankrupt enterprises.

2. Responsibility to fulfill the tax obligation of taxpayers that terminate their operation without carrying out procedures for dissolution or bankruptcy according to law:

2.1. For enterprises that terminate their operation not according to business dissolution or bankruptcy procedures without fulfilling their tax obligation, owners of private enterprises, chairmen of members' councils or owners of limited liability companies, chairmen of boards of directors of joint-stock companies or heads of management boards of cooperatives shall pay outstanding tax arrears.

2.2. Outstanding tax arrears of households or individuals that terminate their business activities without fulfilling their tax obligation shall be paid by heads of those households or those individuals themselves.

2.3. Outstanding tax arrears of cooperative groups that terminate their operation without fulfilling their tax obligation shall be paid by heads of those cooperative groups.

2.4. Persons with the responsibility to pay taxes who have completely fulfilled the tax obligation under the provisions of Points 2.1, 2.2 and 2.3 of this Clause may request other persons with joint obligations to fulfill their respective joint obligation proportions toward them according to the provisions of civil law.

III. Fulfillment of the tax obligation in case of reorganization of enterprises

1. Divided enterprises shall fulfill their tax obligation before the division is conducted. If a divided enterprise has not yet fulfilled the tax obligation, enterprises newly founded from the divided enterprise shall fulfill the tax obligation.

2. Split-up, consolidated or merged enterprises shall fulfill their tax obligation before the splitting up, consolidation or merger is conducted. If a split-up, consolidated or merged enterprise has not yet fulfilled its tax obligation, it and enterprises newly founded from it, consolidating or merging enterprise shall fulfill the tax obligation.

3. Enterprises undergoing ownership transformation shall fulfill their tax obligation before the transformation is conducted. If a transformed enterprise has not yet fulfilled its tax obligation, the enterprise newly founded from the transformed enterprise shall fulfill the tax obligation.

4. Reorganization of enterprises does not change the tax payment time limit applicable to reorganized enterprises. If reorganized enterprises or newly founded enterprises fail to fully pay taxes within the set time limit, they shall be sanctioned according to law.

5. Tax agencies may request one of enterprises having a joint obligation to fulfill the whole tax obligation. The enterprise that has fulfilled the whole tax obligation may request other enterprises with the joint obligation to perform their respective joint obligation proportions toward it the provisions of civil law.

IV. Inheritance of the tax obligation from individuals who are deceased, have lost their civil act capacity or are missing under the provisions of civil law

1. The tax obligation of persons regarded by law as being deceased shall be fulfilled by their heirs within the value of estates left by the deceased.

For undivided estates, the tax obligation of the deceased shall be fulfilled by estate managers.

For divided estates, the tax obligation of the deceased shall be jointly fulfilled by the heirs within the values of estate parts they receive, unless otherwise agreed by the heirs.

The State, agencies or organizations enjoying estates according to testaments shall also fulfill the tax obligation left by the deceased like individual heirs.

In case of no heirs, either by will or by law, or heirs renounce estates, the fulfillment of the tax obligation left by the deceased complies with the civil law.

2. The tax obligation of persons declared missing or having lost their civil act capacity shall be fulfilled by persons assigned by the court to manage assets of persons declared missing or having lost civil act capacity within the value of assets they are assigned to manage.

3. When a competent state agency cancels a decision declaring a person as deceased, missing or having lost his/her civil act capacity, his/her tax arrears previously written off under Article 65 of the Law on Tax Administration will be restored and no fine will be imposed for late tax payment for the duration that person is regarded as being deceased or missing or having lost the civil act capacity.

V. Certification of fulfillment of the tax obligation

1. Taxpayers may request tax agencies directly managing them to certify the fulfillment of the tax obligation for each kind of tax or all kinds of tax; or request tax agencies directly managing them to certify tax and fine amounts they shall pay up to the time of certification.

Foreign individuals or contractors that pay taxes through organizations or individuals responsible for withholding taxes at source may request tax agencies directly managing the withholding parties to certify the fulfillment of the tax obligation.

2. A written request for certification of fulfillment of the tax obligation must clearly state:

- The taxpayer's name and tax identification number;

- Amounts of each tax due, including the tax amount declared by the taxpayer in the tax dossier submitted to the tax agency and the presumptive tax amount or the assessed tax amount under a decision of the tax agency;

- Fine amounts for tax law violations;

- Paid tax and fine amounts;

- Tax and fine arrears (if any).

3. Within three working days after receiving taxpayers' written requests for certification of fulfillment of the tax obligation, tax agencies shall give written certification of taxpayers' fulfillment of the tax obligation. In case of necessity to verify and check information on the performance of the tax obligation by taxpayers, tax agencies shall notify in writing taxpayers of the reason for delayed certification of taxpayers' fulfillment of the tax obligation.

Part F

PROCEDURES FOR TAX EXEMPTION OR REDUCTION; REMISSION OF TAX AND FINE ARREARS

I. If taxpayers determine by themselves tax amounts eligible for exemption or reduction

1. Taxpayers shall determine by themselves tax amounts eligible for exemption, reduction or non-collection and declare them in tax declaration dossiers to tax agencies, except the cases specified in Section II of this Part.

2. Documents related to the determination of tax exemption or reduction constitute part of a tax declaration dossier.

II. If tax agencies decide on tax exemption or reduction

Tax agencies shall directly examine dossiers and issues decisions on tax exemption or reduction for the following cases:

1. Business income tax exemption for cooperatives in which each laborer earns a monthly income in a year lower than the common minimum wage level set by the State for state employees. A dossier of request for tax exemption is a written request for tax exemption made according to form No. 01/MGTH enclosed with this Circular, clearly stating the tax amount requested to be exempted, the paid tax amount (if any), the reason for tax exemption and a list of enclosed documents.

2. Business income tax exemption for households and individuals that pay tax by the presumption method and earn low incomes. A dossier of request for tax exemption is a written request for tax exemption made by a household or individual according to form No. 01/MGTH enclosed with this Circular, clearly stating the tax amount requested to be exempted, the paid tax amount (if any), the reason for tax exemption and a list of enclosed documents.

3. Business income tax exemption or reduction for business individuals or private households that pay tax by the presumption method: If they cease their business activities for fifteen or more consecutive days in a month, they will be considered for 50% reduction of payable tax amounts; if they cease their business activities for the whole month, they will be considered for tax exemption for that month. A dossier of request for tax exemption or reduction is a written request for tax exemption or reduction made by a household or individual according to form No. 01/MGTH enclosed with this Circular, clearly stating the payable tax amount; the tax amount requested to be exempted or reduced; the paid tax amount (if any); the tax amount to be paid; the reason for tax exemption or reduction, and a list of enclosed documents.

4. Royalties tax exemption for natural forest products exploited by permitted inhabitants in communes where exist forests.

A dossier of request for tax exemption comprises: A written request for royalties tax exemption, made according to form No. 01/MGTH enclosed with this Circular, clearly stating the type of exploited natural resources, the place and form of exploitation, the place where exploited natural resources are sold, and a list of enclosed documents.

Written requests for tax exemption must be certified by commune-level People's Committees and forest protection bodies directly managing forests.

5. Special consumption tax, royalties tax, personal income tax, land and water surface rent, housing and land tax and agricultural land use tax exemption or reduction shall be granted to taxpayers that encounter difficulties caused by natural disasters, enemy sabotage, unexpected accidents, suffer from losses or are unable to pay taxes.

A dossier of request for tax exemption or reduction comprises:

- A written request for tax exemption or reduction, made according to form No. 01/MGTH enclosed with this Circular, clearly stating the time of and reason for damage, value of damaged assets, loss amount caused by a natural disaster, enemy sabotage or unexpected accident, the payable tax amount, the tax amount requested to be exempted or reduced, and a list of enclosed documents;

- A written record determining the degree and value of asset damage made by a competent agency according to form No. 02/MGTH enclosed with this Circular and certified by the commune-level administration of the locality where the natural disaster, enemy sabotage or accident occurs;

- A financial finalization sheet (for enterprises) accompanied with explanations and analyses for determining damaged assets and loss amount caused by the damage.

6. Time limit for processing tax exemption or reduction dossiers:

- Within thirty days after receiving complete dossiers, tax agencies shall issue decisions on tax exemption or reduction, made according to form No. 03/MGTH enclosed with this Circular, or send to taxpayers notices of reasons for their ineligibility for tax exemption or reduction, made according to form No. 04/MGTH enclosed with this Circular.

- In case of necessity to conduct actual inspection to collect sufficient grounds for processing dossiers, the time limit for issuance of tax exemption or reduction decisions is sixty days from the date of receipt of complete dossiers.

III. Remission of tax and fine arrears

1. Eligible for remission of tax and fine arrears are:

1.1. Enterprises that are declared bankrupt, have made payments under the provisions of law on bankruptcy and have no assets to pay tax and fine amounts.

1.2. Individuals who are regarded by law as being dead or missing or having lost their civil act capacity and have no assets to pay tax and fine arrears.

2. A dossier of request for remission of tax and fine arrears comprises:

2.1. A written request for remission of tax and fine arrears made according to form No. 01/XNTH enclosed with this Circular by the tax agency directly managing the taxpayer eligible for remission of tax and fine arrears;

2.2. A tax return for finalization up to the time a court issues a decision on opening of the procedures for settling the request for declaration of business bankruptcy (for enterprises declared bankrupt);

2.3. Documents related to the request for remission of tax and fine arrears, including: a copy of the court's decision on declaration of business bankruptcy; written evidence to the effect that the individual is regarded by law as being dead or missing or having lost the civil act capacity under the provisions of civil law and civil procedure law.

3. Order of processing of dossiers of request for remission of tax and fine arrears:

3.1. Tax agencies directly managing taxpayers shall make and send dossiers of request for remission of tax and fine arrears to their superiors as follows:

- District-level tax departments shall send to provincial-level tax departments dossiers of request for remission of tax and fine arrears of taxpayers under district-level tax departments' management.

- Provincial-level tax departments shall send to the General Department of Taxation dossiers of request for remission of tax and fine arrears of taxpayers under provincial-level tax departments and dossiers transferred by district-level tax departments.

3.2. If dossiers of request for remission of tax and fine arrears are incomplete, superior tax agencies shall, within ten working days after receiving the dossiers, send notices on dossier incompleteness, made according to form No. 02/XNTH enclosed with this Circular, to tax agencies that have made the dossiers for completion of dossiers.

3.3. Within sixty days after receiving complete dossiers of request for remission of tax and fine arrears, competent persons shall issue decisions on remission of arrears, made according to form No. 03/XNTH enclosed with this Circular, or notices of ineligibility for remission of tax and fine arrears, made according to form No. 04/XNTH enclosed with this Circular.

4. Competence to remit tax and fine arrears and report to the National Assembly:

4.1. The Minister of Finance may authorize the General Director of Taxation to examine dossiers and issue decisions on remission of tax and fine arrears according to the provisions of Clause 1 of this Section. A decision on remission of tax and fine arrears must have the following contents:

- Name of the taxpayer entitled to remission of tax and fine arrears;

- Tax arrear eligible for remission corresponding to a given tax and taxation period or the time of arising of tax liability;

- Fine arrear eligible for remission;

- Tax agency responsible for complying with the decision.

4.2. Based on arrear remission decisions, tax agencies that manage tax and fine arrears eligible for remission shall incorporate these arrears in figures for finalization of annual state budget revenues, and concurrently notify them to finance agencies of the same level for incorporation in reports on local budget finalization.

4.3. The General Director of Taxation shall sum up tax and fine arrears remitted under budget finalizations at all levels and submit them to the Minister of Finance for reporting to the National Assembly when the Government submits the general finalization of the state budget to the National Assembly for approval.

Part G

PROCEDURES FOR TAX REFUND OR CLEARING

I. Tax refund dossiers

1. A value-added tax refund dossier for the case the input value-added tax amount is not fully credited in three consecutive months or the case no output value-added tax amount arises at the investment stage:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of creditable input tax and output tax amounts, paid tax amount (if any), the input tax amount larger than the output tax amount requested to be refunded, made according to form No. 01-1/HTBT enclosed with this Circular. In case input and output value-added tax amounts are adjusted as compared with those stated in the tax return submitted to the tax agency, the taxpayer shall clearly state the reason for adjustment.

2. Value-added tax refund dossiers for exports:

2.1. For exports paid in cash, a tax refund dossier comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of creditable input tax and output tax amounts, paid tax amount (if any), the input tax amount larger than the output tax amount requested to be refunded, made according to form No. 01-1/HTBT enclosed with this Circular. In case input and output value-added tax amounts are adjusted as compared with those stated in the tax return submitted to the tax agency, the taxpayer shall clearly state the reason for adjustment.

- A list of documents bearing the enterprise's signature and seal, clearly stating:

+ Serial number and date of the declaration of exports (for entrusted exportation, the serial number and date of the export declaration of the entrusted exporter must be stated);

+ Serial number and date of the export contract or serial number and date of the entrusted export contract or the entrusted processing contract for case of entrusted exportation or entrusted processing;

+ Mode of payment, serial number, date of the voucher of payment for exported goods or services and the money amount stated therein;

- A written record of liquidation of the entrusted export contract or the entrusted processing contract (in case of expiration of contract term) or a written record of periodical debt comparison between the export-entrusting party and the entrusted exporter (for case of entrusted exportation or entrusted processing of exports).

2.2. For exports paid in kind, a tax refund dossier comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of creditable input tax and output tax amounts, paid tax amount (if any), the input tax amount larger than the output tax amount requested to be refunded, made according to form No. 01-1/HTBT enclosed with this Circular. In case input and output value-added tax amounts are adjusted as compared with those stated in the tax return submitted to the tax agency, the taxpayer shall clearly state the reason for adjustment.

- A list of documents bearing the enterprise's signature and seal, clearly stating:

+ Serial number and date of the goods or service export contract signed with the foreign party;

+ Serial number and date of the contract of purchase of goods or services from the foreign party in clearing payment for exported goods or services;

+ Serial number and date of the export declaration of exports;

+ Serial number and date of the import declaration of imports;

+ Serial number and date of the foreign party's written certification of the money amount involved in clearing payment;

+ Serial number and date of the voucher of via-bank payment and the paid amount (in case of a difference after the clearing payment for goods).

2.3. For on-spot exportation, a tax refund dossier comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of creditable input tax and output tax amounts, paid tax amount (if any), the input tax amount larger than the output tax amount requested to be refunded, made according to form No. 01-1/HTBT enclosed with this Circular. In case input and output value-added tax amounts are adjusted as compared with those stated in the tax return submitted to the tax agency, the taxpayer shall clearly state the reason for adjustment.

- A list of documents bearing the enterprise's signature and seal, clearly stating:

+ Serial number and date of the export contract signed with the foreign party;

+ Serial number and date of the customs declaration of goods imported or exported on the spot;

+ Serial number and date of the voucher of via-bank payment for goods exported on the spot and the money amount stated therein.

2.4. For goods involved in transitional processing, a tax refund dossier comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of creditable input tax and output tax amounts, paid tax amount (if any), the input tax amount larger than the output tax amount requested to be refunded, made according to form No. 01-1/HTBT enclosed with this Circular. In case input and output value-added tax amounts are adjusted as compared with those stated in the tax return submitted to the tax agency, the taxpayer shall clearly state the reason for adjustment.

- A list of documents bearing the enterprise's signature and seal, clearly stating:

+ Serial number and date of the output processing contract; serial number and date of the input processing contract;

+ Serial number and date of the declaration of goods involved in transitional processing;

+ Serial number and date of the voucher of via-bank payment for goods exported on the spot and the money amount stated therein.

2.5. For goods exported for execution of offshore investment projects, a tax refund dossier comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of creditable input tax and output tax amounts, paid tax amount (if any), the input tax amount larger than the output tax amount requested to be refunded, made according to form No. 01-1/HTBT enclosed with this Circular. In case input and output value-added tax amounts are adjusted as compared with those stated in the tax return submitted to the tax agency, the taxpayer shall clearly state the reason for adjustment.

- A list of documents bearing the enterprise's signature and seal, clearly stating:

+ Serial number and date of the offshore investment certificate;

+ Serial number and date of the written approval of the investment project or a document of equivalent legality according to the law of the country receiving the investment;

+ A list of goods exported for execution of the offshore investment project promulgated by the Ministry of Trade (clearly specifying types, quantities and values of goods).

3. A value-added tax refund dossier for an ODA-funded project comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises.

- A general list of refundable input tax amounts;

- A list of invoices and vouchers of goods and services purchased, made according to form No. 01-2/GTGT enclosed with this Circular;

- A competent authority's decision on approval of the project funded with non-refundable ODA or preferential ODA loan capital allocated by the state budget (a copy bearing the seal and certification signature of the authorized person of the project). In case of tax refund in multiple times, this decision is only required at the first time.

- The ODA-funded project managing agency's certification of ODA source, i.e., non-refundable ODA or ODA loan preferentially allocated by the state budget, funding the project which is eligible for value-added tax refund (a copy certified by the agency) and the fact that the State does not allocate domestic fund for paying value-added tax. The taxpayer shall only submit this document together with the first-time tax refund dossier of the project.

If the main contractor makes the tax refund dossier, apart from the documents specified at this Point, there must also be the project owner's certification of non-allocation of domestic fund by the state budget to the project for payment to the contract at the value-added tax-inclusive price, the value-added tax-exclusive payment price based on the bidding result and a request for tax refund to the main contractor.

4. A value-added tax refund dossier for a Vietnamese organization that uses foreign humanitarian or non-refundable aid to purchase goods in Vietnam for use as aid:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular, clearly stating the reason for refund, the tax amount requested to be refunded and the time that tax amount arises;

- A general list of refundable input tax amounts;

- A list of invoices and vouchers of goods and services purchased, made according to form No. 01-2/GTGT enclosed with this Circular;

- A competent authority's decision approving the aid (a copy certified by the taxpayer);

- The Ministry of Finance's written certification of the aid amount of the foreign non-governmental organization, clearly stating the name of the aid-providing organization, the value of the aid, the agency receiving and managing the aid.

5. A value-added tax refund dossier for a subject entitled to diplomatic privileges and immunities:

- A representative mission's diplomatic note requesting value-added tax refund;

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular and certified by the Protocol Department (the Ministry of Foreign Affairs);

- Originals, each enclosed with two copies bearing the representative mission's seal, of added value invoices. The tax agency shall return original invoices to the representative mission after making value-added tax refund.

6. A dossier of refund of income tax on high-income earners comprises:

- A written request for tax refund, made according to form No. 01/HTBT enclosed with this Circular;

- A copy of the identity card or passport;

- A declaration of personal income tax for finalization;

- Documents evidencing income tax credit; income tax receipts (originals);

- Documents evidencing the expiration of the working duration, such as: retirement decision, decision on relief from office, written record of contract liquidation, list of days of residence (if any);

- Power of attorney in case of authorized tax refund.

7. A dossier of tax refund under a double taxation avoidance agreement:

- A written request for tax refund under the agreement, made according to form No. 02/HTBT or No. 03/HTBT enclosed with this Circular, applicable to organizations and individuals being residents of foreign countries or Vietnam;

- The original certificate of residence granted by the tax agency of the country of residence (clearly stating the year of residence);

- Copies of the business registration certificate and/or the tax registration certificate granted by the country of residence, for business organizations; or copies of the business registration certificate and/or the practice license and the tax registration certificate granted by the country of residence and the passport for entry into and exit from Vietnam, for independent practitioners; or copies of the labor contract and the passports for entry into and exit from Vietnam, for dependent practitioners;

- Copies of the economic contract, service provision contract, agency contract, entrustment contract, technology transfer contract and documents evidencing the enterprise's direct operation of means of transport (for enterprises engaged in international transportation) or labor contract signed with a Vietnamese organization or individual, certificate of bank deposit in Vietnam or certificate of capital contribution to a company in Vietnam (depending on type of income in specific cases);

- Tax receipts with the State Treasury's or the tax agency's certification; or copies of tax payment receipts and written certification of paid tax amounts by the State Treasury where the organization or individual pays tax.

- Contracting Vietnamese organization or individual's certification of the performance duration and actual activities under the contract.

8. A petrol and oil charge refund dossier comprises:

- A written request for charge refund, made according to form No. 01/HTBT enclosed with this Circular;

- A list of petrol and oil charge amounts requested to be refunded, clearly stating the volume of petrol and oil actually purchased and charged, the volume of petrol and diesel oil actually exported, the petrol and oil charge amount requested to be refunded, the enterprise's account number at a bank or provincial/municipal state treasury, made according to form No. 01-2/HTBT enclosed with this Circular;

- The purchase contract and invoice of petrol and diesel oil of the petrol and oil-selling organization or individual;

- The petrol and diesel oil export permit granted by the Ministry of Finance;

- The petrol and diesel oil export contract signed with the foreign party. For entrusted exportation, a contract for entrusted export of petrol and diesel oil is also required;

- Invoices of petrol and diesel oil sold to foreign parties, export processing zones and export processing enterprises;

- A customs declaration of exports, with the customs office's account liquidation and certification of volume and category of actually exported petrol and diesel oil.

9. A dossier for overpaid tax or charge refund for a taxpayer that is merged, divided, split up, dissolved, falls bankrupt, undergoes ownership transformation or terminates operation:

- A written request for tax or charge refund, made according to form No. 01/HTBT enclosed with this Circular;

- A competent authority's decision on merger, consolidation, division, splitting up, dissolution, bankruptcy, ownership transformation or termination of operation;

- Documents for tax finalization or tax declaration up to the time of merger, consolidation, division, splitting up, dissolution, bankruptcy, ownership transformation or termination of operation.

10. Dossiers for refund of other taxes or charges are written requests for tax or charge refund, clearly stating grounds for refund, tax or charge amounts requested to be refunded, and requesting the use of refunded amounts to pay other taxes or charges (if any).

II. Processing of tax refund dossiers

1. Receipt of tax refund dossiers:

1.1. Organizations or individuals that are taxpayers having tax identification numbers shall submit tax refund dossiers to tax agencies directly managing them.

1.2. Organizations or individuals that are not taxpayers shall submit tax refund dossiers to provincial-level tax departments of localities where organizations locate their executive offices or individuals permanently reside.

1.3. If tax refund dossiers are submitted directly to tax agencies, tax officers shall receive these dossiers, append seals of receipt of dossiers and record the time of receipt of dossiers and enclosed documents.

1.4. If tax refund dossiers are submitted electronically, tax agencies shall receive, check and accept these dossiers through their electronic data processing systems.

1.6. If tax refund dossiers are incomplete, tax agencies shall, within three working days from the date of receipt of dossiers, notify such to taxpayers for completion of dossiers.

2. Responsibility to process tax refund dossiers:

2.1. For dossiers eligible for tax refund before examination, tax agencies shall, within fifteen working days after receiving complete tax refund dossiers, issue tax refund decisions, made according to form No. 04/HTBT enclosed with this Circular, or notify in writing that dossiers shall be examined prior to tax refund or notify the reason for refusal of tax refund.

2.2. For dossiers subject to examination before tax refund, tax agencies shall, within sixty days after receiving complete tax refund dossiers, issue tax refund decisions or notify the reason for refusal of tax refund.

2.3. Based on tax amounts to be refunded to taxpayers and tax arrears, tax agencies shall:

- Issue tax refund decisions in case taxpayers have no tax or fine arrears of all taxes; or,

- Issue tax refund decisions and state budget revenue collection orders in case taxpayers are refunded tax under tax refund dossiers and still have tax or fine arrears of other taxes.

In a tax refund decision, the name of the taxpayer entitled to tax refund, refunded tax amount and place of receipt of refunded tax amount must be clearly stated.

2.4. If tax agencies check and determine that refundable tax amounts are different from those requested to be refunded, they shall handle the case as follows:

- If tax amounts requested to be refunded are larger than refundable ones, refundable tax amounts will be refunded to taxpayers.

- If tax amounts requested to be refunded are smaller than refundable ones, tax amounts requested will be refunded to taxpayers.

2.5. If the processing of tax refund dossiers is delayed due to the fault of tax agencies, apart from refunded tax amounts, taxpayers will also be paid interests for the duration of delayed tax refund. The interest rate used to calculate interests for delayed tax refund is the base one prescribed by the State Bank and effective at the time of issuance of interest payment decisions. The number of days for interest calculation is counted from the date following the set deadline for processing tax refund dossiers to the date of issuance of the tax refund decision, including weekends and holidays.

Interest amounts are stated in tax refund decisions and taxpayers will be paid interest amounts together with refunded tax amounts.

2.6. Tax refund dossiers are subject to examination before tax refund in the following cases:

- Tax refund under treaties to which the Socialist Republic of Vietnam is a contracting party.

- Taxpayers request tax refund for the first time.

- Taxpayers were handled for their acts of tax evasion or tax fraud within two years before they make tax refund requests.

- Taxpayers fail to conduct via-bank payment transactions according to regulations.

- Enterprises are merged, consolidated, divided, split up or dissolved, falls bankrupt, undergo ownership transformation or terminate operation; state enterprises are assigned, sold, contracted or leased.

- Taxpayers fail to explain or supplement their tax refund dossiers as requested within the time limit stated in tax agencies' notices.

- Imports are subject to state management according to the Ministry of Finance's regulations.

III. Procedures for tax refund or tax clearing

1. For taxpayers entitled tax refund but not required to clear refunded tax amounts against other taxes:

1.1. For value-added tax: Tax agencies shall send tax refund decisions to the State Treasury of the same level. The State Treasury shall refund tax amounts to taxpayers and send debit notices to the State Treasury of the superior level to make payments from the central budget's fund for value-added tax refund.

1.2. For other taxes: Tax agencies shall send tax refund decisions to the State Treasury where taxpayers eligible for tax refund have paid taxes. The State Treasury shall refund tax amounts to eligible taxpayers. Refund accounting is conducted in the following two cases:

1.2.1. Refund of revenues not yet finalized: The State Treasury shall account the return of collected revenues for each budget level and according to the state budget index.

1.2.2. Refund of revenues already finalized in the annual budget of the previous year: The State Treasury shall account as expenditures of budgets at all levels these amounts in proportion to revenues previously divided to each budget level.

1.3. Transfer of documents: The State Treasury shall send tax refund documents to tax agencies that have decided on tax refund and finance agencies of the same level (or finance agencies of the superior level if the refund source comes from the budget of the superior level) for monitoring, inspection and comparison. The State Treasury shall report on a monthly basis to finance agencies of the same level on refunded tax amounts for checking and comparison.

2. For taxpayers entitled tax refund but required to clear refunded tax amounts against other taxes:

2.1. For refund of value-added tax, tax agencies shall send tax refund decisions and tax collection orders to the State Treasury of the same level. For refund of other revenues, tax agencies shall send tax refund decisions and tax collection orders to the State Treasury where taxpayers entitled to tax refund have paid taxes.

2.2. Accounting of tax refund and state budget revenues of the State Treasury shall be conducted as follows:

2.2.1. If the State Treasury that makes tax refund concurrently collects other payable tax amounts, it shall account the tax refund under the provisions of Clause 1 of this Section; account state budget revenues according to collection orders of tax agencies and divide them to budgets at all levels; and pay remaining refunded tax amounts (if any) to taxpayers.

2.2.2. If the State Treasury that makes tax refund does not collect other payable tax amounts, the State Treasury that makes tax refund shall account the refund under the provisions of Clause 1 of this Section; transfer refunded amounts together with state budget revenue collection orders of tax agencies to the State Treasury that collects taxes for use as a basis for accounting of state budget revenues according to the collection orders; and pay remaining refunded tax amounts (if any) to taxpayers.

Part H

TAX EXAMINATION AND INSPECTION

I. Tax examination

Pursuant to Articles 77 and 78 of the Law on Tax Administration, all tax dossiers submitted to tax agencies are subject to examination of the completeness and accuracy of their information and documents in order to assess the observance of tax law by taxpayers.

Tax examination may be conducted at tax agencies' offices or taxpayers' offices.

1. Tax examination at tax agencies' offices:

1.1. Tax officers shall examine the contents declared in tax dossiers and compare them with taxpayers' databases and related documents on taxpayers, data of taxpayers conducting the same business line or dealing in the goods for the purpose of analyzing and assessing their compliance or detecting incomplete declarations which may lead to tax underpayment, evasion or fraud.

After examination, tax officers shall certify tax examination results in tax dossiers in the following cases:

- Dossiers with full declarations, containing sufficient and accurate information and documents and showing no sign of law violation will be accepted;

- For dossiers detected to lack required documents or have some elements not yet fully declared according to regulations, tax agencies shall notify such to taxpayers for completion. For dossiers submitted directly to tax agencies, tax officers receiving dossiers shall notify or give guidance directly to dossier submitters. For dossiers sent by post or electronically, tax agencies shall issue written notices within three working days from the date of dossier receipt.

- For dossiers with contents to be further clarified, tax agencies shall clearly record these contents for further examination.

1.2. Examination to clarify tax dossiers' contents that must be supplemented:

1.2.1. When tax agencies detect, through examination, comparison or analysis, improperly declared contents, inaccurately declared figures or want to verify contents related to payable, exempted, reduced or refundable tax amounts, they shall issue written notices, made according to form No. 01/KTTT enclosed with this Circular, requesting taxpayers to explain or supplement those information or documents.

The time limit for explaining or supplementing information or documents in tax dossiers is ten days. Taxpayers may come to tax agencies to directly give verbal explanations or provide written ones.

If taxpayers give explanations directly at tax agencies, written records of those explanations shall be made according to form No. 02/KTTT enclosed with this Circular.

1.2.2. After taxpayers explain or supplement information or documents at the request of tax agencies:

- If taxpayers' information or document explanations or supplements are satisfactory to tax agencies and taxpayers can prove that declared tax amounts are correct, their tax dossiers will be accepted.

- If taxpayers, after explaining or supplementing information or documents, still fail to produce sufficient grounds to prove that declared tax amounts are correct, tax agencies shall request taxpayers to make additional declarations. The time limit for making additional declarations is five days after tax agencies issue notices requesting additional declarations.

- If taxpayers fail to explain or supplement information or documents within the time limit stated in tax agencies' notices or fail to make additional declarations in tax dossiers or are unable to prove that declared tax amounts are correct through their explanations or additional declarations, tax agencies shall:

+ Assess tax and issue notices of payable tax amounts, made according to form No. 01/KTTH enclosed with this Circular, to taxpayers; or,

+ Issue decisions on tax examination at taxpayers' offices in case they have insufficient grounds for tax assessment. Decisions on tax examination at taxpayers' offices are made according to form No. 03/KTTH enclosed with this Circular.

2. Tax examination at taxpayers' offices:

2.1. Cases subject to tax examination at taxpayers' offices:

2.1.1. Taxpayers fail to explain or supplement information or documents, fail to make additional declarations in tax dossiers or are unable to prove that declared tax amounts are correct through making additional declarations in tax dossiers; or tax agencies have insufficient grounds for tax assessment.

2.1.2. Cases subject to examination before tax refund:

- Tax refund is made under treaties to which the Socialist Republic of Vietnam is a contracting party.

- Taxpayers request tax refund for the first time.

- Taxpayers commit acts of tax evasion or tax fraud within two years before they request tax refund.

- Taxpayers fail to make via-bank payments according to regulations.

- Enterprises are merged, consolidated, divided, split up, dissolved, fall bankrupt, undergo ownership transformation, or terminate operation; state enterprises are assigned, sold, contracted or leased.

2.2. Tax examination at taxpayers' offices:

2.2.1. Tax agencies shall issue tax examination decisions for the case specified at Point 2.1 of this Section. Tax examination can only be conducted at taxpayers' offices upon the issuance of decisions on tax examination at taxpayers' offices. Taxpayers may decline the examination if no tax examination decision is shown.

Decisions on tax examination at taxpayers' offices are issued by heads of tax agencies.

A decision on tax examination at a taxpayer's office must at least state:

- Legal grounds for examination;

- Examined subject (if the examined subject is a taxpayer having member units, the examination decision must contain a list of member units of the examined subject under the decision);

- Examination contents and scope;

- Examination duration;

- Head and other members of the examination team;

- Powers and responsibilities of the examination team and the examined subject.

2.2.2. Order and procedures for tax examination at taxpayers' offices:

- Within five working days from the date of its signing, a decision on tax examination at a taxpayer's office shall be sent to the taxpayer.

- Within three working days from the date of receipt of the tax examination decision or before the time the examination is conducted at the taxpayer's office, if the taxpayer can prove with the tax agency that the declared tax amount is correct or can fully pay the tax amount assessed by the tax agency, the head of the tax agency shall issue a decision to cancel the tax examination decision.

- Examination under a tax examination decision shall be conducted within ten working days from the date of issuance of the decision. To start the tax examination, the head of the tax examination team shall announce the tax examination decision and explain its contents to the examined subject for compliance. If the taxpayer, upon receiving the examination decision, requests examination postponement, it shall send a written request clearly stating the reason for postponement and the proposed postponement duration to the tax agency for consideration and decision. Within five working days after receiving the written request for examination postponement, the tax agency shall notify the taxpayer of whether it approves or disapproves of the request.

- In the course of implementing the examination decision, the examination team shall compare the tax dossier contents with accounting books and documents, financial statements and relevant documents and the real situation within the scope of the tax examination decision.

In case of necessity to temporarily seize documents or material evidence related to acts of tax evasion or tax fraud, the head of the examination team shall report in writing to the examination decision issuer for decision the application of the measure of temporary seizure of documents or material evidence related to acts of tax evasion or tax fraud according to regulations.

The taxpayer shall supply adequate and accurate information and documents relevant to examination contents at the request of the examination team in a timely manner, and take responsibility before law for the accuracy of supplied information and documents. The taxpayer may refuse to supply information and documents irrelevant to examination contents and those pertaining to state secrets, unless otherwise provided for by law.

- The time limit for tax examination at a taxpayer's office is five working days from the date of commencement of examination. In case of necessity to further verify and gather evidence, the head of the examination team shall, at least one day before the expiration of this time limit, report such in writing to the examination decision issuer for extension of the examination time limit. The examination time limit stated in an examination decision may be extended once under a written decision. The time limit extension must not exceed five working days.

2.2.3. Written records of tax examination:

A written record of tax examination shall be made according to form No. 04/KTTT enclosed with this Circular and signed within five working days after the examination is finished.

A written record of examination must have the following principal contents:

- Legal grounds for making the written record.

- Description of the actual development of the case according to examined contents; results of comparison of figures found by the examination team with those declared and reported by the taxpayer; reasons for difference;

- Conclusion on each examined content, identification of act(s) and severity of violation; handling of violation(s) according to the examination team's competence; proposed remedy(ies) that are beyond the examination team's competence

The written record of examination shall be publicly notified to the examination team and the examined taxpayer, and appended with signatures of the head of the examination team and the taxpayer (or its lawful representative) and the taxpayer's seal (if any) on every page.

Taxpayers may receive written records of tax examination, request explanations of contents of these records and reserve their opinions in these records.

2.2.4. Handling of tax examination results:

- Within five working days from the date of signing of a written record of examination with a taxpayer, the head of the examination team shall report to the tax examination decision issuer on examination results. If examination results necessitate the tax handling or sanctioning of administrative violations, the head of the tax agency shall, within ten working days from the date of signing of the written record, issue a tax handling or administrative violation sanctioning decision. The taxpayer is obliged to abide by this decision.

- If the sanctioning level for the taxpayer's act of violation goes beyond the sanctioning competence of the tax examination decision issuer, the tax examination decision issuer shall, within ten working days from the date of signing of the written record of tax examination, propose in writing a competent person to sanction the tax administrative violation (the written proposal is enclosed with the written record of examination) and notify such to the taxpayer.

Within ten working days after receiving the tax agency's written proposal for issuance of a decision on sanctioning of tax administrative violation, the proposal recipient shall issue such decision, or notify that the violation is beyond his/her sanctioning competence and return the dossier to the proposing tax agency.

If the examination team detects, through tax examination, that the act of tax violation shows signs of tax evasion or tax fraud, it shall, within five working days from the date of detection, report it to the head of the tax agency for transfer of the case dossier to the tax inspection section for addition of the case to the inspection plan according to Clause 2, Article 81 of the Law on Tax Administration.

II. Tax inspection

1. Tax inspection is conducted only in the cases specified in Article 81 of the Law on Tax Administration. For a case showing signs of tax law violation, tax inspection will be conducted only when there are grounds to believe that a taxpayer declares inadequate tax liability or commits tax evasion or tax fraud, which is not severe enough for examination for penal liability.

2. Tax inspection is conducted on the basis of annual inspection plans, except for the cases specified in Clauses 2 and 3, Article 81 of the Law on Tax Administration (inspection is conducted when there is a sign of a tax law violation or inspection to settle complaints or denunciations or upon request of heads of tax administration agencies at all levels or of the Minister of Finance).

An inspection plan shall be made on the basis of the analysis of information on taxpayers, the detection and listing of taxpayers showing abnormal signs in performing the tax obligation, and the selection of taxpayers to be inspected. An inspection plan must state the inspected subject, inspection period, tax subject to inspection and projected inspection duration.

Inspection plans of a tax agency must be sent to its superior. If inspection plans of a tax agency and its superior have the same inspected subject, the superior tax agency shall realize its inspection plan on that inspected subject.

If the State Inspectorate has a tax inspection plan identical to a tax agency's inspection plan, the State Inspectorate's tax inspection plan is prioritized.

3. Heads of tax agencies at all levels are competent to issue tax inspection decisions, made according to form No. 03/KTTT enclosed with this Circular.

A tax inspection decision must state:

- Legal grounds for inspection;

- Inspected subject (if the inspected subject is a taxpayer having member units, the inspection decision must contain a list of member units of the inspected subject under the decision);

- Inspection contents and scope;

- Inspection duration;

- Head and other members of the inspection team. In case of necessity, the inspection team may have a deputy head who assists the head in performing some assigned tasks and is answerable to the head for the performance of his/her assigned tasks. In the course of tax inspection, the inspection team must have at least one member being a tax inspector.

The tax inspection decision must be sent to the inspected subject within three working days from the date of its signing.

4. The time limit for a tax inspection is thirty days from the date of announcement of the tax inspection decision. In case of necessity to further verify and gather evidence, the head of the inspection team shall, at least five working days before the expiration of the set inspection time limit, report such in writing to the inspection decision issuer for extension of the inspection time limit. The inspection time limit stated in an inspection decision may be extended once under a written decision. The time limit extension must not exceed thirty days.

5. Inspection procedures:

5.1. Announcement of inspection decisions:

A tax inspection decision must be announced within fifteen days from the date of its issuance.

Before announcing the inspection decision, the head of the inspection team shall notify the inspected subject of the time, participants and place of decision announcement. When announcing the inspection decision, the head of the inspection team shall read the full text of the inspection decision, clearly explain its contents to the inspected subject so that the latter can understand and abide by the inspection decision, and announce a working agenda between the inspection team and the inspected subject as well as other matters related to the inspection.

The announcement of inspection decisions must be recorded in writing according to form No. 05/KTTT enclosed with this Circular.

A taxpayer that, upon receiving an inspection decision, requests inspection postponement shall send a written request clearly stating the postponement reason and duration to the tax agency for consideration and decision. Within five working days after receiving a written request for inspection postponement, the tax agency shall notify the taxpayer of whether it approves or disapproves of the inspection postponement.

5.2. Inspection:

- To start the inspection, the inspection team shall request the taxpayer to supply information and documents relevant to inspection contents, such as business registration and tax registration dossiers, registrations for use of invoices, accounting books and documents, financial statements, tax declaration dossiers, etc. The taxpayer shall supply in a timely manner sufficient and accurate information and documents relevant to inspection contents at the request of the tax agency. The taxpayer may refuse to supply information and documents irrelevant to tax inspection contents or those pertaining to state secrets, unless otherwise provided for by law. When receiving documents supplied by the taxpayer, the inspection team shall check, count, preserve and use them for proper purposes and may not lose or misplace them. When there are grounds to determine that the taxpayer commits a tax law violation, the head of the inspection team shall issue a decision on sealing several or all documents related to inspection contents. The sealing, seal removal or cancellation of sealing strictly comply with the provisions of law.

- In the course of implementing the inspection decision, the inspection team shall compare information in the tax declaration dossier with accounting books and documents, financial statements and relevant documents and, when necessary, inventory the taxpayer's assets within the scope of the inspection decision in order to detect and verify matters and events, and make accurate, truthful and objective conclusions on inspection contents.

- For unclear events or documents, in order to have enough grounds to make conclusions, the inspection team shall prepare in detail contents which it requires the taxpayer to explain in writing. If the taxpayer's written explanation is still unclear, the inspection team shall organize a questioning session for the taxpayer to clarify unclear contents and identify collective and personal responsibilities. The questioning session must be recorded in a minutes signed by both sides and sound-recorded in case of necessity.

- In case of necessity to expertise documents, the head of the inspection team shall report to the inspection decision issuer for decision on soliciting expertise. The inspection team shall make a written record of seizure of documents, clearly stating the actual state of those documents (and material objects, if any), before transferring them to the expertise agency.

- In the course of inspection, if the taxpayer is detected to show signs of tax evasion or tax fraud related to other organizations or individuals or signs of a complicated case of tax evasion or tax fraud, the tax agency may apply permitted inspection measures specified in Articles 89, 90 and 91 of the Law on Tax Administration and the guidance in Section III of this Part.

- The inspection team shall make a dossier of inspection evidence to serve as a basis for making a written record of inspection, which consists of written records of comparison results; copies of relevant documents (including audio and video recordings); written records of warehouse and fund inventory and work results of the inspection team's members with concerned subjects of the enterprise; documents and reports made by the enterprise at the request of the inspection team or lists of documents and figures made by the inspection team together with the taxpayer.

5.3. Making of written records of tax inspection:

Written records of tax inspection are made according to form No. 04/KTTT enclosed with this Circular and signed within five working days after the inspection is finished.

A written record of tax inspection must contain:

- Legal grounds for its making.

- Description of inspected contents, results of comparison by the inspection team of found figures with those declared and reported by the taxpayer; reason(s) for any difference; inspection evidence.

- Conclusion on each inspected content, identification of acts of violation and their severity; handling of violations according to the inspection team's competence; proposed remedy(ies) that are beyond the inspection team's competence

The written record of inspection shall be publicly notified to the inspection team and the inspected taxpayer, and appended with signatures of the head of the inspection team and the taxpayer (or its lawful representative) and the taxpayer's seal (if any) on each page.

Taxpayers may receive written records of tax inspection, request explanation of contents of these records and reserve their opinions in these records.

6. Reports on inspection results and inspection conclusions:

6.1. Within fifteen days after the inspection is finished, the head of the inspection team shall make a written report on inspection results and draft inspection conclusions, and send them to the inspection decision issuer.

6.2. A report on inspection results must have the following contents:

- Specific conclusion on each inspected content;

- Clear identification of the nature, severity and cause of violation, liability of the agency, organization or individual that commits the act of violation (if any);

- Disparity between opinions of the inspection team's members and those of the inspection team's head on contents of the report on inspection results (if any);

- Applied handling measures according to the inspection team's competence; proposed remedies;

- Provisions of law serving as a ground for identification of the nature and severity of the violation and proposed remedies.

The report on inspection results and draft inspection conclusion submitted to the inspection conclusion maker must contain all written opinions of the inspection team's members. Opinions of a team member must express his/her agreement or disagreement to the report or draft conclusion made by the team head on his/her and other members' work performance. In case of disagreement, reasons must be clearly stated.

7. Inspection conclusions and circulation of inspection conclusions

7.1. Within fifteen days after receiving reports on tax inspection results, heads of tax agencies that have issued tax inspection decisions shall make written tax inspection conclusions according to form No. 06/KTTT enclosed with this Circular.

7.2. A tax inspection conclusion must have the following contents:

- Assessment of tax law observance by the inspected subject within the scope of tax inspection;

- Conclusion on inspected contents;

- Clear identification of the nature, severity and cause of the violation, and liability of the agency, organization or individual that commits the act of violation (if any);

- Handling of the administrative violation according to the inspection team's competence or proposal for handling by a competent person according to the provisions of law.

7.3. In making written inspection conclusions, heads of tax agencies that have issued tax inspection decisions may request heads and members of inspection teams to report or inspected subjects to explain and further clarify matters necessary for making tax inspection conclusions.

7.4. Inspection conclusions must be sent to inspected taxpayers, tax agencies directly managing them (in case superior tax agencies issue inspection decisions) or superior tax agencies (in case tax agencies directly managing taxpayers issue inspection decisions).

8. If taxpayers commit acts of tax law violation, heads of tax agencies directly managing them shall base themselves on inspection conclusions to issue decisions on tax assessment and decisions on administrative sanctioning of taxpayers.

If sanctions against acts of violation of taxpayers are beyond their sanctioning competence, the inspection decision issuers shall, within three days from the date of signing of inspection conclusions, make written proposals to competent persons to sanction tax administrative violations (enclosed with written records of tax inspection and tax inspection conclusions) and notify such to taxpayers. Within three working days after receiving proposals for issuance of decisions on sanctioning of tax administrative violations, if the cases fall beyond their sanctioning competence, proposal recipients shall return the dossiers to inspection decision issuers and notify them of the reason for return. If the cases fall within their competence, proposal recipients shall consider them and issue decisions on sanctioning of tax administrative violations within thirty working days from the date of signing of written records of inspection.

III. Procedures for application of tax inspection measures to cases showing signs of tax evasion or tax fraud

1. Collection of information on acts of tax evasion or tax fraud:

Heads of tax administration agencies may request organizations or individuals that have information on acts of tax evasion or tax fraud to supply such information in writing or verbally.

1.1. Supply of information in writing:

- Written requests for information supply must be made according to form No. 07/KTTT enclosed with this Circular and sent directly to organizations or individuals requested to supply information.

- The time limit for information supply is counted from the time a written request for information supply is handed to a person responsible for information supply or a third party responsible for forwarding the request to the person responsible for information supply.

- An information supply document must clearly state the person responsible for information supply. If the information supplier is a taxpayer's representative, that document must bear the signature, full name and title of the information supplier and the seal of the managing organization. If the information supplier is an individual, that document must bear the signature, full name, serial number of the identity card or other equivalent information of the information supplier.

- Individuals or organizations are obliged to supply information within the time limit set by tax agencies. If unable to supply information, they shall reply in writing, clearly stating the reason.

1.2. Supply of information in verbal form:

- A written request for supply of information in verbal form must be made according to form No. 08/KTTT enclosed with this Circular and have the following principal contents: Name of the organization or individual responsible for information supply, information requested to be supplied, documents which must be carried along by the information supplier, time and place of information supply.

- A tax inspector tasked to collect information shall produce the tax inspector's card when conducting information collection.

- The place of information collection is the tax agency's office.

- When collecting information, the tax inspector shall make a written record according to form No. 09/KTTT enclosed with this Circular which must state:

+ Information collection starting time and finishing time, questions and answers, supplied documents, audio and video recordings, signatures of the information supplier and the tax inspector conducting information collection.

+ The information supplier may read or listen to the written record, and write his/her opinions in the written record.

+ The information supplier may keep one copy of the written record of information supply.

- Persons responsible for information supply get travel and accommodations expenses paid by tax agencies according to regulations.

- Tax agencies shall keep confidential information on information suppliers, documents, autographs and evidence obtained from information suppliers.

2. Temporary seizure of documents and exhibits related to acts of tax evasion or tax fraud

2.1. Heads of tax agencies or tax inspection teams may decide on temporary seizure of documents and exhibits related to acts of tax evasion or tax fraud.

A decision on temporary seizure of documents and exhibits must be made according to form No. 10/KTTT enclosed with this Circular and state documents and exhibits to be temporarily seized, the person conducting the temporary seizure, mode of temporary seizure (sealing on the spot or transport to another place of temporary seizure) and temporary seizure duration. Decisions on temporary seizure shall be handed to owners of temporarily seized documents and exhibits.

2.2. Temporary seizure of documents and exhibits related to acts of tax evasion or tax fraud is applied when it is necessary to verify circumstances for making decisions on handling or prompt prevention of acts of tax evasion or tax fraud.

2.3. In the course of tax inspection, if inspected subjects show signs of dispersion or destruction of documents and exhibits related to acts of tax evasion or tax fraud, tax inspectors on duty may temporarily seize those documents and exhibits.

Within twenty four hours after temporarily seizing documents and exhibits, tax inspectors shall report to heads of tax administration agencies or tax inspection teams for issuance of decisions on temporary seizure of documents and exhibits.

Within eight working hours after receiving the reports, competent persons shall consider and issue temporary seizure decisions. If competent persons disagree with the temporary seizure, tax inspectors shall return documents and exhibits within eight working hours.

2.4. When temporarily seizing documents and exhibits related to acts of tax evasion or tax fraud, tax inspectors shall make written records of temporary seizure according to form No. 11/KTTT enclosed with this Circular. Such a written record must clearly state the names, quantity and types of temporarily seized documents and exhibits, and bear signatures of the person who temporarily seizes and the person who manages documents and exhibits. Issuers of temporary seizure decisions shall preserve temporarily seized documents and exhibits and be held responsible before law if those documents and exhibits are lost, sold, exchanged or damaged.

In case of necessity to seal up documents and exhibits, the sealing must be conducted in the presence of owners of those documents and exhibits. When owners of documents and exhibits are absent, the sealing shall be conducted in the presence of representatives of their families or organizations, local administration and witnesses.

2.5. Exhibits being Vietnamese currency, foreign currencies, gold, silver, gems, precious metals and objects under special management must be preserved according to law; for exhibits being perishable goods or articles, temporary seizure decision issuers shall make written records thereof and promptly sell them to avoid any loss. Proceeds from the sale of exhibits shall be transferred into custody accounts opened at the State Treasury so as to ensure full collection of tax and fine amounts.

2.6. Within ten working days from the date of temporary seizure, temporary seizure decision issuers shall issue decisions on disposal of temporarily seized documents and exhibits according to form No. 12/KTTT enclosed with this Circular, take measures stated in the disposal decisions or return temporarily documents and exhibits to individuals and organizations when confiscation of temporarily seized documents and exhibits is not applied. The time limit for temporary seizure of documents and exhibits may be prolonged for complicated cases which need verification but must not exceed sixty days after the date documents and exhibits are temporarily seized. The prolongation of the time limit for temporary seizure of documents and exhibits shall be decided by competent persons defined at Point 2.1 of this Section. The return of temporarily seized documents and exhibits to their owners must be stated in written records between parties, made according to form No. 13/KTTT enclosed with this Circular.

Tax agencies may keep documents used everyday by taxpayers for no more than three working days and archival documents for no more than ten working days. If tax agencies return temporarily seized documents within that time limit, they are not required to issue decisions on disposal of documents.

2.7. Tax agencies shall send copies of the temporary seizure decision, temporary seizure written record and decision on disposal of documents and exhibits and written record of return of documents and exhibits to organizations or individuals whose documents and exhibits are temporarily seized.

2.8. If temporarily seized documents and exhibits are lost, fraudulently exchanged, damaged or returned late, thus causing damage to their owners, tax agencies shall pay compensations for damage to those persons according to provisions of law.

3. Search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud:

3.1. Search of a hiding place of documents and exhibits shall be conducted when there is a ground to believe that documents and exhibits related to an act of tax evasion or tax fraud are hidden there.

3.2. Heads of tax agencies may decide on search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud. If the hiding place of documents and exhibits related to acts of tax evasion or tax fraud is a place of residence, written approval of the president of the district-level People's Committee managing the locality where exists the searched place is required.

A decision on search of a hiding place of documents and exhibits must be made according to form No. 14/KTTT enclosed with this Circular and state the place to be searched, composition of the search team, search time and its effect.

3.3. Search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud shall not be conducted at night, on holidays or when owners of searched places proceed with weddings or funerals, except when illegal acts are caught in flagrant delicto and the reasons for the search shall be clearly stated in written records.

3.4. Search of a hiding place of documents and exhibits shall be conducted in the presence of its owner and witnesses. Search of the office of an agency or organization shall be conducted in the presence of a representative of this agency or organization. When the owner of the searched place or the representative of the agency or organization is absent and the search cannot be delayed, the presence of representatives of the local administration and two witnesses is required.

3.5. Persons present at the searched place when the search in conducted may neither leave the place nor talk with one another until the search is finished.

3.6. All cases of search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud must be decided and recorded in writing according to form No. 15/KTTT enclosed with this Circular. A copy of the search decision and a copy of the written record of search of a hiding place of documents and exhibits shall be handed to the owner of the searched place.

3.7. A written record of search of a hiding place of documents and exhibits related to an act of tax evasion or tax fraud must have the following principal contents:

- Search reason, serial number of the search decision or name of the head of the tax agency approving the search. Written approval of the president of the district-level People's Committee managing the locality where exists the searched place (for search of places of residence);

- Starting time and finishing time of the search;

- Search-conducting person;

- Searched place;

- Owner or manager of the searched place;

- Documents and exhibits found through the search;

- Handling of documents and exhibits related to the act of tax evasion or tax fraud according to the tax agency's competence or proposal for handling by a competent person.

Part I

COMPLAINTS, DENUNCIATIONS AND INSTITUTION OF LEGAL ACTIONS

I. Administrative decisions and acts subject to complaints and institution of legal actions

1. Taxpayers, individuals and organizations may lodge complaints about the following administrative decisions of tax agencies:

1.1. Tax assessment decision; tax payment notice;

1.2. Tax exemption decision, tax reduction decision;

1.3. Tax refund decision;

1.4. Decision on administrative sanctioning of act of tax law violation;

1.5. Decision on enforcement of tax administrative decision;

1.6. Tax inspection conclusion;

1.7. Complaint settlement decision;

1.8. Other administrative decisions defined by law.

Tax agencies' documents issued in the form of official letter, notice, etc., but expressing tax agencies' decisions on some specific matters in tax administration activities and applicable to one or several specific subjects only once are also considered tax agencies' administrative decisions.

2. Taxpayers, individuals and organizations may lodge complaints about administrative acts of tax agencies, tax administration officers, persons assigned to perform tax administration duties when they have grounds to believe that those acts are unlawful or infringe upon their lawful rights and benefits. Administrative acts appear in the form of action or inaction.

3. Denounced subjects, tax agencies, tax administration officers and persons assigned to perform tax administration duties shall check and review their administrative decisions or acts and promptly amend or remedy unlawful ones in order to avoid complaints.

II. Competence of tax agencies at all levels to settle complaints and denunciations

1. Competence of tax agencies at all levels to settle complaints is as follows:

1.1. Directors of district-level tax departments are competent to complaints about their own administrative decisions and acts or administrative decisions and acts of responsible persons under their direct management.

1.2. Directors of provincial-level tax departments are competent to:

1.2.1. Settle complaints about their own administrative decisions and acts or administrative decisions and acts of responsible persons under their direct management.

1.2.2. Settle complaints which are further lodged after they have been settled by directors of district-level tax departments.

1.3. The General Director of Taxation is competent to:

1.3.1. Settle complaints about his/her own administrative decisions and acts or administrative decisions and acts of responsible persons under his/her direct management.

1.3.2. Settle complaints which are further lodged after they have been settled for the first time by directors of provincial-level tax departments.

1.4. The Minister of Finance is competent to:

1.4.1. Settle complaints about his/her own administrative decisions and acts or administrative decisions and acts of responsible persons under his/her direct management.

1.4.2. Settle complaints which are further lodged after they have been settled for the first time by the General Director of Taxation.

2. Competence of tax agencies at all levels to settle denunciations is as follows:

2.1. Tax agencies shall settle denunciations against illegal acts of persons under their respective management.

2.2. Heads of tax agencies shall settle denunciations against acts of violation of regulations on tasks and official duties of staffs of their agencies.

2.3. Heads of tax agencies shall settle denunciations against acts of violation of regulations on tasks and official duties of heads of their subordinate agencies.

III. Time limit and procedures for settling complaints and denunciations

Time limits and procedures for lodging and settling complaints and denunciations comply with the provisions of law on complaints and denunciations.

Persons competent to settle complaints shall issue complaint settlement decisions according to form No. 01/KNTC enclosed with this Circular.

IV. Reception of complainants and denouncers

1. Heads of tax agencies shall personally receive, and organize the reception of, persons coming to their agencies to make complaints or denunciations or present proposals or reports related to complaints or denunciations; and appoint officers who have good qualities and a sense of responsibility and are knowledgeable about policies and law to receive complainants and denouncers.

The reception of complainants and denouncers must be recorded in writing according to form No. 02/KNTC enclosed with this Circular.

2. The reception of complainants, denouncers or persons filing written complaints or denunciations is conducted at places of citizen reception. Tax agencies shall arrange convenient places for reception of citizens and ensure conditions for complainants and denouncers to make their complaints and denunciations or present their proposals or reports related to complaints and denunciations in an easy and convenient manner.

Citizen reception timetables and internal rules must be posted up at places of citizen reception.

3. Heads of tax agencies shall personally receive citizens according to the following regulations:

3.1. Directors of district-level tax departments shall receive citizens on at least one day a week;

3.2. Directors of provincial-level tax departments shall receive citizens on at least two days a month;

3.3. The General Director of Taxation shall receive citizens on at least one day a month.

4. Heads of sections in charge of settlement of complaints and denunciations shall personally receive citizens according to the following regulations:

4.1. At district-level tax departments, they shall receive citizens on at least three days a week;

3.2. At provincial-level tax departments, they shall receive citizens on at least two days a week;

3.3. At the General Department of Taxation, he/she shall receive citizens on at least four days a month.

V. Institution of legal actions

The institution of legal actions against administrative decisions and acts of tax agencies and tax administration officers complies with the law on procedures for handling administrative cases.

VI. Handling of overpaid tax amounts or underpaid tax amounts after settlement decisions are issued by competent agencies

1. Tax agencies shall refund incorrectly collected tax and fine amounts and pay interests on overpaid portions of incorrectly collected tax and fine amounts to taxpayers or third parties within fifteen days from the date of issuance of complaint settlement decisions or receipt of handling decisions of competent agencies. Interests are calculated at a base interest rate announced by the State Bank.

Handling decisions of competent agencies include: decisions of competent state administrative management agencies or judgments or rulings of competent courts according to law.

2. If payable tax amounts stated in complaint settlement decisions are larger than those stated in complained administrative decisions, taxpayers shall fully pay outstanding tax amounts within ten days from the date of receipt of complaint settlement decisions.

Part J

IMPLEMENTATION EFFECT

1. This Circular takes effect 15 days after its publication in "CONG BAO."

The provisions on monthly tax declaration apply to tax declaration from the tax period of July 2007.

The provisions on quarterly tax declaration apply to tax declaration from the tax period of the third quarter of 2007.

In the period from July 1, 2007, to the end of December 31, 2008, senior experts and senior controllers of tax agencies may have the powers of tax inspectors in tax inspection.

2. To annul all guidance on tax administration issued by the Ministry of Finance before the effective date of this Circular which is inconsistent with the guidance in this Circular.

For the Minister of Finance

Vice Minister
TRUONG CHI TRUNG

* All the forms mentioned in this Circular are not printed herein.-